Senate keen to pass legislated wage hike
Workers install scaffolding on a building in Intramuros, Manila. The P40-wage increase for private sector employees will proceed on July 16, according to the Department of Labor and Employment (DOLE), despite an appeal filed by a coalition of labor groups. According to Wage Order No. NCR-24, the daily minimum wage in Metro Manila will increase from P570 to P610 for the non-agriculture sector and from P533 to P573 for the agriculture sector, service, and retail establishments employing 15 or fewer workers and manufacturing establishments regularly employing less than 10 workers. INQUIRER PHOTO / RICHARD A. REYES
MANILA, Philippines — Senate President Juan Miguel Zubiri on Sunday said the country’s economic growth amid the COVID-19 pandemic would help businesses shoulder the cost of the proposed nationwide increase of P150 in the daily wage of workers in the private sector.
“I spoke to several businessmen who are agreeable with the move to increase wages as they have seen a marked increase in Filipino workers wanting to leave the country and work abroad,” Zubiri told the Inquirer.
“They are experiencing a ‘brain drain’ on skilled workers and having a hard time hiring even new graduates who are [seeking] greener pastures abroad,” he added.
He said he and his colleagues were determined to pass a legislated across-the-board salary increase despite the expected opposition from President Marcos’ economic team.
The decision of the Regional Tripartite Wages and Productivity Board on June 26 to increase by P40 the daily wage of workers in the National Capital Region was “too little, too late,” according to Zubiri.
Article continues after this advertisement‘A one-time, big-time’ hike
He said he had called on the Department of Labor and Employment to adjust the salary of workers in Metro Manila six months ago.
Article continues after this advertisementAs pointed out by several senators, the Senate leader said any improvement in the benefits of employees should be felt all over the country.
Zubiri said the average daily pay of workers in the provinces in Mindanao and Visayas was still P350, way below the new minimum daily wage of P610 in Metro Manila.
Businesses can absorb cost
“As I have said, it’s not fair to the other areas. That’s why I said we should have a one-time, big-time across-the-board wage hike,” he said in a radio interview.
He also noted that other countries in Southeast Asia, including Indonesia, Malaysia, and Vietnam, have recently implemented salary increases for their workers.
According to Zubiri, many of his colleagues were in favor of passing a legislated nationwide wage hike.
“The Senate will make a stand on this issue,” he said.
As to the concerns of business groups opposing such a move, Zubiri noted that the country’s gross domestic product grew by 7.6 percent in 2022, slightly above the government’s target range of 6.5 percent to 7.5 percent.
“With the economy growing, I believe that businesses can absorb the slight additional cost to their production, but will get in return a more productive and inspired workforce,” he said.
He noted that a recent Pulse Asia survey showed that more than half of Filipinos rated themselves as “poor” and recently experienced hunger.
It also showed that 97 percent of those surveyed supported the proposal to raise by P150 the daily wage of workers nationwide.
