By Bhernadette A. Pascual, CPA
Undeniably, every ordinary Filipino is in a tight situation. Prices of goods are soaring and the cost of living is getting higher. Meanwhile, our income stays the same. Many are struggling to make ends meet.
To help the people, the Labor Code of the Philippines lays down rules on employment practices and conditions of employment. Employers should comply with these.
Today, the minimum wage set by the government is P537 in Metro Manila. In other regions, the amount varies. Many argue that this is not enough to raise a family. Unfortunately, there are some people who are getting paid below the minimum wage and are forced to accept it because they fear that if they lose their job they will have no other means. These days, obtaining a job proves to be more difficult for many ordinary Filipino people. With Metro Manila boasting as the center of commerce many people from other regions attracted by the abundance of job opportunities and higher wages, they try to find their living in Metro Manila. Some get lucky; others, not quite.
What if the minimum wage is the same for all of the regions? What are the implications of setting the minimum wage as such? Will it be advantageous to ordinary Filipino people or not?
It sounds beneficial that minimum wage would be equal and people from other regions would have the same income as they would earn in Metro Manila without having to leave their families in their provinces. With the crowded population reduced, maybe this could alleviate the traffic problem in Metro Manila, albeit a little. Raising the minimum wage in other regions may stimulate the growth of provinces due to expanding opportunities for businesses and employees alike.
However, increasing the wages in other regions may also be disadvantageous for employees because it may result in businesses not being able to keep up with increasing salaries paid to their employees. As such, there may be a decrease in work available and even increase in prices of goods or services.
For now, the effects of a uniform minimum wage should be made the subject of further study.
Pascual is a graduate school student (Master of Business Administration – Financial Management) of Polytechnic University of the Philippines.