Philippine Minimum Wage Earners Get 22-peso Daily Rate Increase

Today's news brings about good news to minimum wage earners as they will be getting a 22-peso increase in their daily wage. Will this be enough to cover the cost of living especially here in the capital? What will happen to the companies who can't offer this increase?

Well, first of all, I'm pretty sure 22 pesos will be sort of a help since it can be used primarily for transportation. However, the main problem that minimum wage earners are facing would be food. Yes, it can add to the budget but again, with the cost of living, it may not be enough for a family of 4 or more perhaps.

Since minimum wage earners are not taxed, based from what President Gloria Arroyo mandated I think last year if I'm not mistaken, they are practically earning around 500 pesos a day which includes benefits from SSS and Philhealth. But the take home pay is around 400 or so.

On the companies' side, it is not easy to just give out an increase in the base salary especially if they have hundreds of employees or more. They may resort to laying off some employees or closing altogether if they are just small. However, there may be some companies who are just making this as an excuse that it's going to be more costly whatsoever.

What I feel bad about is when companies try to stop or lessen wage increases for selfish reasons. They may say that since the wages of the basic workers go up, they may have to lessen the wages of the people on top. They can live off 22 pesos less in a day. These minimum wage earners can live off with their salaries even though how hard it is. Why not give it to those who are working in production who are the basic sources of income of a company? When production goes up, because they are probably more motivated, you will most likely have more money to give to everyone in the company in the long run considering it will be relative to the sales.

I heard that they want to bring it down to a 10-peso daily increase. I mean, the minimum jeepney fare is 7.50. It's not even enough to get you to work and go back home. How much more for those who travel long distances just to go to work? I'm not sure about the exact words but the gist from what a representative of KMU (Kilusang Mayo Uno - May 1 is Labor Day in the Philippines) said that it sounded like an insult rather than help.

Well, those are just my opinion. It's really relative to the lifestyle of the person. I earn a bit more than the minimum wage and I still am having a hard time balancing my expenses. I cut off some unnecessary spending but it is still hard. How much more are those who have several kids that go to school or those who are trying to budget everything just to be able to eat? Well, for now, everybody should just be thankful that there's an increase regardless of how much it is. Hopefully, things will get better for our workers especially during the incoming Aquino administration.

Source:
ABS-CBN channel 2 TV Patrol World - June 8, 2010
GMA channel 7 24 Oras - June 8, 2010