Senate Majority Leader Joel Villanueva said that clarifying the criteria of what constitutes a living wage is the way to go to provide for nourishment and general well-being of a family of five consistent with the country’s direction in Ambisyon 2040.
Villanueva made the call after the National Capital Region (NCR) Regional Wage Board approved a P40 wage hike for the daily minimum wage of workers in the region.
“There is no sugar-coating the situation of Filipino workers – the minimum wage as presently determined is not enough for a family of five to live decently. Hindi na po pantay ang kinikita ng bawat manggagawang Pilipino sa taas ng bilihin ngayon,” Villanueva said.
Senate Bill No. 2140, filed by Villanueva, seeks to amend the wage fixing criteria in the Labor Code of the Philippines to put living wage in the front and center in the determination of regional minimum wage. The bill provides that living wage must ensure the employees’ and their families’ nourishment, clothing, shelter and education, and general well-being.
He said Filipinos who receive the current daily minimum wage from P306 to P570 have to make do with these amounts for the family’s daily needs such as food, transportation, medicine, shelter and education, and a P40 wage increase will not make a dent.
Citing a study of the IBON Foundation, a family of five in the National Capital Region (NCR) needs at least P1,160 a day to live decently.
“This means that the NCR minimum wage is only half of the required living wage,” Villanueva said.
“The Constitution itself guarantees to all workers the right to a living wage. This is the intent of our bill,” he added.
“It is important that we have clear standards which will serve as a basis in considering proposed wage increases to ensure a right balance in affording workers their families’ basic needs and sustainability and competitiveness of business,” he said.
In determining the regional minimum wages, the bill stressed that the “estimated cost of living for a determined size of a family in the region” shall be considered.
Other relevant factors include the “wage adjustment vis-a-vis the consumer price index; the needs of workers and their families; the need to induce industries to invest in the countryside; improvements in the standards of living; the prevailing wage levels; and, equitable distribution of income and wealth along the imperatives of economic and social development.”
Villanueva pointed out that there are laws which grant reprieve to businesses on the payment of minimum wage, in recognition of their financial ability to cope with rising prices. For example, barangay micro-business enterprises are exempt from complying with the minimum wage, while enterprises employing less than 10 employees may, in certain circumstances, also be exempted from the payment of minimum wage.
