COVID impact, lack of gov’t aid erode wage values in PH

By: Kurt Dela Peña - 3 years ago

Image: Daniella Marie Agacer

MANILA, Philippines — In 2020, when COVID-19 hit, the average monthly wage rate of time-rated workers on a full–time basis fell by 9 percent compared to its 2018 level.

This was one of the highlights of the 2020 Occupational Wages Survey (OWS) released by the Philippine Statistics Authority on Wednesday (Feb. 9) which showed that average monthly wage for time-rated workers fell from P18,108 to P16,486.

Sonny Africa, executive director of local think tank Ibon Foundation, said the government should provide help to these wage earners through increases in pay or a new round of cash transfers.

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Without help, families of these workers could further sink in poverty, Africa said. The domino effect, he said, could impact small businesses that are catering to these groups of workers which would constrict expansion plans.

A broad-based recovery for people, he said, required more than what the government is currently doing.

READ: KMU seeks hike in minimum wage as prices soar

“Low and falling wages aggravates the collapse in aggregate demand which is the biggest constraint to rapid recovery,” Africa told INQUIRER.net, saying that real wage has fallen since the Duterte administration took office.

‘Farmers still least paid’

The OWS, a nationwide survey of establishments which employ 20 or more workers, generates wage statistics as critical inputs to policies on wage and salary administration and wage determination.

Held every two years, the OWS tracks the wage rates of two benchmark occupations and at most 11 occupations in each of the pre-determined 55 out of 71 industries.

The median monthly basic pay––the value that divides the wage distribution into two equal parts––of time-rated workers on a full–time basis in all industries was P13,646 in 2020, a 0.6 percent increase from P13,559 in 2018.

Time-rated workers in agriculture, forestry and fishing had the lowest median monthly basic pay––P10,476, a 6.2 percent rise from P9,861 in 2018. Those engaged in electricity, gas, steam, and air conditioning supply registered the highest––P27,253, a 10.7 percent rise from P24,267 in 2018.

The PSA said there was a significant rise of 14.5 percent in pay in the mining and quarrying industry as the median monthly basic pay in this sector increased to P13,272 in 2020 from P11,590 in 2018.

Graphic: Kurt Dela Peña

However, the biggest drop was seen in the financial and insurance industry as the median monthly basic pay was P15,986, a negative 13.5 percent or P2,500 lower than P18,486 in 2018.

“Female time-rated workers reported a little higher median monthly basic pay of P14,051 compared to P13,467 received by male [time–rated] workers in 2020 for all industries,” the PSA said.

Here’s a list of the median monthly basic pay of time-rated workers on a full–time basis:

Graphic: Kurt Dela Peña

The PSA said 50.3 percent of the time–rated workers on a full–time basis received a monthly basic pay ranging from P11,000 to P20,999 while 31.3 percent received P11,000 and lower.

Only 3.5 percent received a monthly basic pay of P31,000 to P40,999, the PSA said.

Wage crisis

Africa said real wage is at its lowest since 2014. The fall in wages during the Duterte administration is not only because of the pandemic and the economic crisis caused by the overstretched and overstrict lockdowns.

He explained that even before the COVID-19 crisis, the administration of President Rodrigo Duterte presided over the least number of wage increases and by the smallest amounts since the collapse of the Marcos dictatorship.

As Ibon Foundation said, the late Presidents Corazon Aquino and Benigno Aquino III presided over six wage hikes each while former Presidents Fidel Ramos and Gloria Macapagal–Arroyo presided over seven wage hikes each.

Former President Joseph Estrada, who was elected in 1998 and ousted from Malacañang in 2001, presided over only two wage hikes. Duterte, likewise, presided over two wage hikes.

Graphic: Kurt Dela Peña

The rise in the rate of real wage in Aquino’s presidency was 54.4 percent; Ramos’ was 2.8 percent; Estrada’s was 8.2 percent; Arroyo’s was 2.7 percent; Aquino III’s was 14.2 percent; and Duterte’s was negative 9.7 percent.

“The real value of the average monthly wage fell 5.6 percent between July 2016 and August 2020––from P14,171 to P13,171, at constant 2012 prices,” Africa said.

“Over that same period, the real value of the NCR minimum wage fell 4.5 percent––from P467 to P446, also at constant 2012 prices. With inflation to date, the real value has fallen by 9.7 percent as of December 2021,” he said.

Ibon Foundation’s 2022 BirdTalk explained that in Metro Manila, there have only been two wage hikes since the start of the current administration, which increased nominal wage by only 9.4 percent––P537.

“The lockdowns and their aftermath will just give the government further reason to not give any meaningful wage hikes. As it is, this administration will be the first one in the post-Marcos era where real wages fell over its term,” said Ibon Foundation.

Africa said: “The falling wages are also only part of the problem of ordinary Filipinos. Some four out of 10 employed are in informal self-employment or family-operated farms and businesses. People have been crowding into this kind of irregular low-earning work, especially since the lockdowns started.”

Benchmark occupations

The PSA said aside from the two benchmark occupations––accounting and bookkeeping and unskilled workers (except janitors, messengers, and freight handlers)––a total of 190 occupations were monitored in 2020.

Graphic: Kurt Dela Peña

The average monthly wage rate of accounting and bookkeeping clerks in all industries was P18,008, a 9.3 increase from P16,482 in 2018 while unskilled workers only had P11,587, a 3.6 percent rise from P11,189 in 2018.

Here’s a list of the average monthly wage rates of the two benchmark occupations in all industries in 2020:

The accounting and bookkeeping clerks employed in electricity, gas, steam, and air conditioning supply received the highest average monthly wage rate which translated to a 6.3 percent rise from 2018 levels.

Graphic: Kurt Dela Peña

A 23.2 percent increase was also seen in the average monthly wage rate of unskilled workers engaged in electricity, gas, steam, and air conditioning supply.

Accounting and bookkeeping clerks in repair of computers and personal and household goods; other personal service activities had the lowest average monthly wage rate––P15,038—a negative 12.9 drop from P17,272 in 2018.

The unskilled workers in agriculture, forestry and fishing also had the lowest  average monthly wage rate with P9,591, a 0.2 increase from P9,568 in 2018.

No allowance

While there was a significant increase in the median monthly allowance of time–rated workers on a full–time basis, the PSA said a lot of workers did not receive their monthly allowance in 2020.

Graphic: Kurt Dela Peña

The median monthly allowance of time–rated workers on a full–time basis was P2,546 in 2020, a 43.1 percent rise compared to P1,716 in 2018, the PSA shared.

The median monthly allowance was higher for female time–rated workers compared to males. The females received P2,507 while the males only received P2,410 in 2020.

Eight out of the 18 covered industries in 2020 had higher median monthly allowance. The time-rated workers engaged in arts, entertainment, and recreation had the highest––P6,119.

However, 65.9 percent of the time-rated workers did not receive monthly allowance in 2020 while 17.4 percent received P2,500 and lower and only 1.0 percent had allowances which ranged from P11,500 to P15,999.

Here’s a list of the median monthly allowance of time-rated workers on a full-time basis:

Highest-paying jobs

The OWS likewise revealed that the highest average monthly wage rate was recorded for mathematicians, actuaries and statisticians in insurance, and pension financing except compulsory social security.

Next were computer network professionals in computer programming, consultancy, and related activities; and information service activities. Geologists and geophysicists ranked third:

  1. Mining Engineers, Metallurgists, and Related Professionals: P43,334

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