Ben Madilynn
A LABOR group leader in Cebu has slammed the new wage order mandating an increase of P33 to P43 on the daily minimum salary of ordinary workers in Central Visayas, describing it as a pittance or inadequate for a family of five or more.
The Regional Tripartite Wages and Productivity Board (RTWPB) 7 announced on Monday, Sept. 16, 2024, that the new minimum wage will increase from P468 to P501, effective Oct. 2.
Jaime Paglinawan, chairman of the Alyansa sa mga Mamumuo sa Sugbo-Kilusang Mayo Uno, said in a statement on Wednesday, Sept. 18 that P501 is not enough for a family of five.
“If you divide P501 among a family with five members, it results in only P100.20 per member. If you further divide that into three meals, it becomes just P33.40 per meal. This is insufficient for a family’s daily needs,” Paglinawan said in Cebuano.
Paglinawan further said the new minimum wage would be further reduced by contributions to the Social Security System, Philhealth, and Pag-ibig.
“The RTWPB’s decision is pro-employer and it cannot be trusted since it establishment in 1989,” he said.
Paglinawan said there is a wide wage disparity between workers in Central Visayas compared to the National Capital Region, where the minimum wage is P645.
According to research institution Ibon Foundation, the average family living wage in Central Visayas is estimated to be P1,278 per day as of August. This figure represents the income required for a family of five to cover basic living expenses, including food and non-food necessities, with some allowance for savings and social security
Paglinawan said companies have the capacity to provide a P150 to P750 across-the-board wage increase due to high net profits.
“According to PSA (Philippine Statistics Authority) data, based on the Annual Survey of Philippine Business and Industries, the top 1,000 corporations recorded a net income of P1.8 trillion in 2022,” Paglinawan said.
He further said the net income of all companies grew by 28 percent from P1.9 trillion in 2020 to P2.5 trillion in 2021. He also noted that the combined net worth of the 50 richest Filipinos grew by 31 percent from 2020, rising to P3.95 trillion in 2022.
Paglinawan said that the labor groups are focused on pushing for a legislated wage increase. They call on lawmakers to prioritize House Bill 7568 for a P750 across-the-board wage increase or House Bills 514 and 7871 for a P150 across-the-board wage increase to achieve the P1,200 family living wage per day for Filipino workers.
The latest approved Wage Order ROVII-25 sets the following new minimum daily wages:
[]Class A (Cities of Carcar, Cebu, Danao, Lapu-Lapu, Mandaue, Naga, Talisay and municipalities of Compostela, Consolacion, Cordova, Liloan, Minglanilla, San Fernando): Increased to P501 from P458-P468.
[]Other cities not classified under Class A (Bais, Bayawan, Bogo, Canlaon, Dumaguete, Guihulngan, Tagbilaran, Tanjay, Toledo): Increased to P463 from P425-P430.
[]Class C (municipalities not covered under Class A and B): Increased to P453 from P415-P420. / EHP
