Get priorities right

In the run-up to his fourth State of the Nation Address (SoNA), the penultimate one before President Ferdinand Marcos Jr. steps down in 2028, civic groups are demanding that he prioritize a genuine public mass transportation system, which was sidetracked by pork projects.

A recent forum brought together stakeholders to examine pressing transport issues, including the failed PUV modernization program; the privatization of Ninoy Aquino International Airport (NAIA); the worsening conditions faced by TNVS workers and commuters; transport infrastructure development that is destructive to communities and livelihoods; rising toll fees that enrich infrastructure oligarchs; the looming privatization of the Metro Rail Transit-3; and the continued gross lack of adequate public transport infrastructure and routes.

The event aimed to advance policy alternatives that prioritize accessible, affordable, safe, and publicly accountable transportation as an essential public service rather than a source of private profit.

With the Philippines now ranked among the upper-middle-income economies, with a per capita income of $4,000, the level of development can be sustained by a living wage for workers.

The current meager wages are failing to keep up with rising prices, worsened by the ongoing Middle East conflict, hitting many families hard and pushing more into poverty.

IBON Foundation pointed out that the global oil price shock triggered by the US attack on Iran in February has driven faster inflation, raising the cost of fuel as well as basic goods, services, and utilities.

Inflation not only reached a three-year high but also posted its sharpest two-month spike since the 1990s, surging by 4.8 percentage points from 2.4 percent in February to 7.2 percent in April 2026.

With wages unable to keep pace, more households are experiencing economic hardship. IBON estimates that, nationwide, the average nominal minimum wage of P510 is only 39 percent of the P1,312 family living wage (FLW) for five members as of April 2026 at the peak of high inflation — leaving a wage gap of P802.

The gap was barely reduced to P795 in May 2026. Around 65 percent of Filipino families (17.9 million) live below the April FLW.

The group said that regional minimum wages effectively amount to family poverty wages. For a family of five, the average daily minimum wage translates to just P78 per person, far below the official poverty threshold of P91 per person.

According to Social Weather Stations, 52 percent of Filipino families considered themselves poor as of March 2026 — much higher than the 42.8 percent reported at the start of the Marcos administration in 2022.

Minimum wages have lagged behind worker productivity for more than three decades. From 1989 to 2025, worker productivity doubled, yet the real value of the minimum wage fell by 14 percent. Raising the average nominal minimum wage to P1,240 would align wages with productivity growth over that period.

At the same time, corporate profits and individual wealth have surged. From 2020 to 2022, the net income of the top 1,000 corporations grew by 104 percent, and by 59 percent across all establishments.

The net worth of the 50 richest Filipinos also rose by 31 percent. In stark contrast, the average nominal minimum wage increased by a negligible 11 percent, from P364 to P404.

Wage increases can be both affordable and feasible, especially if small firms receive government support and large firms are willing to take a cut in their already huge profits.