THE Employers Confederation of the Philippines (ECOP) on Wednesday rejected proposals to raise the minimum wage to P750, saying only a few workers will benefit from this in the long run.
The current daily minimum wage in Metro Manila is between P533 and P570, but the Makabayan bloc in the House of Representatives filed a bill seeking to raise this to P750 in the private sector to “enable employees to cope with inflation.”
A labor group in Calabarzon has also filed a petition raising the minimum wage to P750.
ECOP president Sergio Ortiz Luis said workers in the informal sector stand to lose on this “problematic” proposal, as they make up the majority of the country’s workforce.
“Hindi lang naman iyong maliliit na employer ang maaapektuhan diyan – ang buong bayan,” Luis said on national television.
“Akala mo magandang pakinggan—tataasan ang suweldo pero maliit na porsiyento lang iyong apektado,” Ortiz asserted, adding that only 16 percent of the country’s nearly 50 million workers will benefit from the minimum wage increase.
Ortiz raised concerns for the remaining 84 percent, who do not have their own employers.
“Kapag tinaasan mo iyong suweldo noong mga minimum earners siyempre sino ang magtataas ng suweldo ng tricycle driver, sino ang magtataas ng suweldo noong mga farm workers, iyong mga market vendors, iyong mga ano – iyon ang hindi nakikita,” Ortiz explained.
“Saan huhugutin noong mga hindi matataasan ng suweldo na wala namang employer, iyong magiging inflation,” he said.
Companies, he noted, could cut jobs or raise the cost of their products when they increase wages, which could not be done by other workers.
“Kapag pinasok mo iyon eh inflationary iyan, paano na iyong hindi nataasan ng suweldo na 86 percent, 90 percent? Iyon ang kawawa. In short iyong buong bayan ang maaapektuhan niyan,” he added.
In a report published on March 31, think tank IBON Foundation underscored the need to adjust the minimum wage in various parts of the country “because the current nominal minimum wage of Filipino workers is unable to keep up with the rising cost of living.”
The group estimated that because of the inflation, the family living wage or the adequate income to raise a family of 5 in Metro Manila is now at P1,161 daily as of February 2023.
“The NCR daily nominal wage however is not even half (49.1 percent) of this, meaning there is a wage gap of 50.9 percent or P591,” the foundation said.
