PH minimum wage pay lags behind cost of living — study

A minimum wage earner working through a holiday highlights the struggle of Filipino workers to keep up with rising living costs, as a new study shows wages remain below the level needed to support a family.

Landry, who works at a roasted chicken stall, said holidays provide rare opportunities to boost his income through additional pay.

“It's our chance because we get double pay, and with overtime, it adds to our allowance so we can earn a bigger salary,” he said in Filipino, based on a report by Ian Cruz on 24 Oras Weekend.

But a study by the IBON Foundation found that minimum wages across all regions in the Philippines fall short of the poverty threshold for a family of five.

Data from the group showed that the average monthly minimum wage stands at around P11,000—about 21% lower than the poverty threshold for a five-member household.

In the National Capital Region (NCR), where the daily minimum wage is highest at Php695 or more than P15,100 per month, this still falls short of the estimated P15,713 monthly poverty threshold for a family of the same size, based on IBON’s 2023 data.

The group added that nine out of 17 regions have wage rates below the national average of Php10,981. Using its family living wage formula, IBON estimates that a daily wage of nearly Php1,300 is needed to meet basic needs.

“Wage boards should be completed, and a national minimum wage should be implemented, which is currently Php277 to be exact. That was as of March," said Sonny Africa, IBON Foundation executive director.

"This has not yet fully caught up with rising prices due to the oil price shock,” he added.

The Department of Labor and Employment has yet to respond to IBON's position.

However, the Employers Confederation of the Philippines said implementing significant wage increases would be difficult, especially for small businesses.

“The problem is even without the crisis, our microindustries already struggle. Even more so now, they cannot afford the cost. It’s easy to say, easy to recommend—but who will provide it? Where will the money come from?” said Sergio Ortiz-Luis Jr., the group’s president.

Regional wage boards are currently reviewing pending petitions for wage increases across the country.—MCG, GMA News