NWPC explains conditions in setting minimum wages

The National Wages and Productivity Commission (NWPC) on Thursday explained the conditions that regional boards consider in setting up minimum wages for workers and why there cannot be a standard minimum rate for the entire country.

During the Laging Handa briefing, NWPC executive director Maria Criselda Sy said there are about 3.6 million minimum wage earners who stand to benefit from the wage hike orders of Regional Tripartite Wages and Productivity Boards (RTWPB).

Amid criticisms that the approved wage increases were insufficient, Sy said RTWPBs are taking into consideration several factors in setting up minimum wages.

“Unang una, ‘yung needs of workers and their families. Pangalawa, employers’ capacity to pay. Pangatlo, requirements of economic development lalong lalo ngayon na we are in the process of recovery kaya maingat 'yung pagsusuri lalo ng socioeconomic situation ng ating mga region,” she said.

(First, the needs of workers and their families. Second, employers’ capacity to pay. Third, requirements of economic development, especially now we are in the process of recovery. That's why the boards are careful in evaluating the socioeconomic situation of our regions.)

Sy also explained that the NWPC’s and RTWPBs’ mandates are to make minimum wages structure regionalized.

“Wala sa aming kakayahan na magtakda ng minimum wage na pangkalahatan sa bansa,” she said.

(We do not have the authority to set up a standard minimum wage for the entire country.)

The NWPC official noted that the minimum wage policy is just among the government’s support policy, citing the conditional cash transfer, free rides, and fuel vouchers as among the government’s programs to ease the burden of low-income earners.

“Ang layunin ng minimum wage ay upang maprotektahan ang vulnerable nating manggagawa sa labis na mababang pasahod,” she said.

(The aim of setting up minimum wages is to protect the vulnerable workers against extremely low wages.)

The RTWPBs of the National Capital Region, Western Visayas, Ilocos, Cagayan Valley, and Caraga have already issued orders increasing the minimum wages in their respective regions.

For NCR, minimum wage will increase by P33 while those in Western Visayas will be up to P110.

For the Ilocos Region, the minimum wage shall increase by P90 in two to three tranches after which the minimum wage rate ranges from P372 to P400 from P282 to P340.

For Cagayan Valley, the RTWPB approved a wage hike ranging from P50 to P75 in two to three tranches, after which the minimum wage rate in the region will range from P400 to P420 from P345 to P370.

For Caraga, its regional wage board integrated a P15 COLA or cost of living allowance to the P305 basic salary and granted a P30 wage increase bringing the new daily minimum wage rate in the region to P350.

Sy said other regional wage boards are expected to release their minimum wage hike orders in the coming days or weeks.

Labor Secretary Silvestre Bello III earlier ordered RTWPBs across the country to review minimum wages as he said that minimum wages, especially in the NCR, may no longer be enough to cover commodities such as food, electricity, and water bills.

Labor group SENTRO said the P33 approved minimum wage increase in NCR is inadequate. Likewise, IBON Foundation said the increase was not enough as it was still far from the P1,080 family living wage.—AOL, GMA News