Big economy unaffected by wage hike
THE Department of Labor and Employment (DoLE) on Friday said that the recent minimum wage increase would not affect KEY MACROECONOMIC OUTCOMES, INCLUDING INflATION, unemployment and gross domestic product.
The DoLE said the January 2024 inflation rate was 2.8 percent, lower than the 8.7 percent recorded in January 2023.
The unemployment rate has also declined to 3.1 percent in December 2023 from 4.3 percent in December 2022.
It added that the growth targets remain on track and the economy is expected to grow between 6.5 percent and 7.5 percent in 2024, higher than its growth forecast of 6 to 7 percent in 2023.
The DoLE said in a statement on Friday that it is ready to provide technical inputs to Congress on the proposed P100 wage increase for employees and workers in the private sector, while it is closely monitoring the developments of the bill.
“The minimum wage rates were also set above the poverty threshold but still below the average wages, leaving enough room for collective bargaining which, as a matter of State policy, remains as the preferred mechanism for negotiating better terms and conditions of work, including wages,” it said.
On Wednesday, Senate Bill 2534, or the “Act Providing for a 100 Pesos Daily Minimum Wage Increase for Employees and Workers in the Private Sector,” reached the Senate plenary, sponsored by Sen. Jinggoy Estrada, chairman of the Senate Labor, Employment and Human Resources Development Committee.
The current daily minimum wage in the National Capital Region is P610.
The initial P150 proposed wage increase under the bill was adjusted to P100, following the regional wage board’s increase in minimum daily wage rates from P30 to P89.
To date, 15 out of the 16 Regional Tripartite Wages and Productivity Boards (RTWPBs) have issued wage orders increasing the regional minimum wage since July 2023.
Nine of these wage orders were initiated by the RTWPBs without any petitions filed by workers’ organizations.
The DoLE said only Region 11 has yet to issue a wage order in the ongoing wage round as it is in the process of completing the wage determination process, having conducted public consultations as well as a public hearing on Feb. 7, 2024.
Around 4.1 million minimum wage earners directly benefited from the wage increases in the 15 regions where wage orders have been issued.
About 8.1 million full-time wage and salary workers earning above the minimum wage are expected to benefit from the correction of wage distortions.
By virtue of Republic Act 10361, or Batas Kasambahay, 13 RTWPBs covering NCR, CAR, Regions 1, 2, 4A, 4B, 5, 6, 8, 9, 10, 12 and Caraga have also issued wage orders granting monthly minimum wage increases to domestic workers ranging from P400 to P1,500, while the remaining three RTWPBs (Regions 3, 7 and 11) are in different stages of the minimum wage determination process.
A total of 1,091,130 domestic workers will benefit from these monthly wage increases, where 342,628, or 31 percent of whom, are on live-in arrangements.