TWO presidential candidates expressed their support for a review of the minimum wage on Thursday, citing the sharp rise in fuel prices and essential goods.
Senator Panfilo M. Lacson, Sr. said in a radio interview that the authorities need to explore “whether there is a need to adjust the minimum wage, and by how much.”
Speaking to Bombo Radyo, he said the government needs to find a balance between the workers’ interests and the ability of employers to pay higher wages.
A second presidential candidate, labor leader Leodegario Q. de Guzman, welcomed the order issued by Labor Secretary Silvestre H. Bello III to review the current minimum wage settings.
“I openly accept Secretary Bello’s order to review the minimum wage because of the rising prices of commodities,” Mr. De Guzman told reporters in a Viber message. “However, it is not enough to simply review.”
Mr. Bello said on Wednesday that the rising price of fuel in the wake of the Russian invasion of Ukraine may serve as “compelling grounds” for wage boards to review the minimum wages.
Wage boards can only reset minimum wages on the anniversary of the previous wage action, though there is a provision for extraordinary circumstances.
Mr. De Guzman noted that following the minimum wage review, the Department of Labor and Employment (DoLE) should order Regional Tripartite wage boards to push for a substantial increase in salary.
He supports a national minimum wage of P750.
“Every year, we have what we call an anniversary period where we make an assessment of all petitions received. One petition called for a uniform increase of P750 in the minimum wage nationwide,” Mr. Bello said on Wednesday.
Mr. De Guzman said that DoLE should address current petitions by labor groups and not wait for labor representatives from the various regions to file additional petitions.
“We should immediately set a national minimum wage of P750 across all national wage boards, as this request is on the side of justice,” he said.
According to the National Wages and Productivity Commission, the minimum wage in the National Capital Region is currently set at P537 a day, though in some regions it is as little as P310.
The National Economic and Development Authority has said that combined income needed by a family of five is P42,000 a month to stay above the poverty line. This is based on the assumption that two members of the household are earning P21,000 each per month, which would exempt them from paying income tax under the tax reform law.
“It is timely that Labor Secretary Silvestre Bello III called for a meeting of the tripartite wage boards to discuss possible adjustments to the minimum wages of our workers,” Mr. Lacson said.
Mr. Lacson noted his encounters with workers complaining about the high cost of goods and services, in part due to high fuel prices.
On Tuesday, fuel prices increased for a 10th consecutive week by P3.60 per liter for gasoline. The corresponding increment was P5.85 for diesel and P4.10 for kerosene. Since the start of the year gasoline, diesel, and kerosene prices have risen by P13.25, P17.50, and P14.40, respectively.
While the wealthy can absorb the higher costs of living, ordinary families cannot, Mr. Lacson said.
Russia’s invasion of Ukraine may continue to drive oil prices even higher, which could push inflation beyond the target range for a second straight year, Bangko Sentral ng Pilipinas Governor Benjamin E. Diokno said on Tuesday.
“Based on the BSP’s oil price simulation, inflation could settle above the target range of 2% to 4%, only if crude oil prices average higher than $95.00 per barrel in 2022 and 2023,” he said. — Alyssa Nicole O. Tan, John Victor D. Ordoñez