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A labor group on Monday renewed its appeal for a P150 across-the-board wage hike for private sector workers nationwide after the National Capital Region Tripartite Wages and Productivity Board granted a P35 daily salary increase in Metro Manila.
According to the Trade Union Congress of the Philippines (TUCP), the P35 increase is a “humiliation” for Filipino workers who, it said, continue to struggle to cope with the skyrocketing prices of commodities.
“[The increase] is a slap in the face of every worker,” the TUCP said, pointing out that the minimum wage across the region has stagnated since 1989 and failed to keep up with inflation.
“As TUCP has repeatedly pointed out, the need to elevate the daily wage above the poverty threshold to afford a family of five at least one nutritious meal a day is inextricably linked to addressing the growing problem of stunted Filipino children due to persistent poverty and inequality,” the union said.
The NCR wage board approved on 27 June a P35 increase in the daily minimum wage for private sector workers, nearly one year after the last pay hike of P40.
The salary adjustment, which will take effect on 17 July, will bring the minimum wage from P610 to P645 for non-agriculture workers in the NCR, and P608 for agriculture workers.
Around 988,243 minimum wage earners in Metro Manila are expected to directly benefit from the salary hike, according to the Department of Labor and Employment.
“The NCR regional wage board proved once again to be so myopic. They opted to protect business profits rather than the bigger societal purpose of the wage increase,” TUCP vice president Luis Corral said.
Employers’ groups and some members of the House have opposed the P150 legislated wage hike fearing that the increase would not be felt in the long run since the prices of goods and services are likely to go up subsequently.
Some lawmakers suspect that private companies would simply pass on the wage increase to the consumers.
The RTWPB-NCR, comprised of representatives from the government, management and labor sectors, conducted two consultations for workers and employers on 23 May and 4 June, respectively, and a public hearing on 20 June in Quezon City as well as a wage deliberation on 27 June in Manila.
“The new rates, which translate to about a 5.7 percent increase from the prevailing daily minimum wage rates in the region, remain above the latest regional poverty threshold for a family of five,” the DoLE said.
This will result in a comparable five percent increase in wage-related benefits covering the 13th month pay, service incentive leave (SIL), and social security benefits such as SSS, PhilHealth and Pag-IBIG,” it added.
For its part, the Department of Trade and Industry welcomed the metro wage hike, saying “it is a timely response to the escalating costs of living, reflecting our shared commitment to improving the quality of life for our workforce.”