₱29 daily wage hike insufficient, says workers and labor group

davaotoday.com file photo

DAVAO CITY, Philippines – Davao City workers feel that the ₱29 daily wage hike announced by the National Wage and Productivity Board is still insufficient for their needs.

The Department of Labor and Employment Region XI (DOLE) said the increase was “scientifically” computed, but workers and the labor group Kilusang Mayo Uno said it fails to provide any substantial relief.

Daily wage earners in establishments along the city’s Claro M. Recto (Claveria) Street have mixed reactions to their new salary rate. While some are thankful to receive an additional amount, others say it is “not enough” as the price of basic needs skyrockets.

Security guard John Amig, 33, and the breadwinner for his family of four, is thankful for the additional increase as two of his children are now going to school. He and his wife, who is also a saleslady in a local mall, will both receive the increase, but he said “this small amount” will barely make a difference in their household.

“What’s twenty pesos now? For instance, the gasoline price for my motorcycle keeps increasing. So are basic needs like food. The increase is only good to buy noodles,” Amig said. (quotes are translated from Bisaya)

Convenience store workers are also asking for higher increase, saying it would be good if they had more to save and spend for their families.

“For now, our salaries are barely enough. There’s nothing to save from it because it’s spent for our daily needs. If someone (in the family) gets sick or has an emergency, we run to the Bombay (Indian) to get a loan,” the 25-year-old store worker Gerald muses.

His colleague Michel, 28, also supported the call for an additional increase as he sees the cost of goods in Davao City has become expensive.

“Everything’s expensive. Prices of milk, diapers, food keep increasing, but wages barely increase. It’s pitiful for us, so it could be good if they peg the wages higher,” she said.

But for Sylvia Cajes, an owner of an eatery, the wage hike means additional expenses to pay her three workers. Although she recognizes the need for her employees, she is also apprehensive of the effect on her business.

“Twenty-nine pesos is big considering I have three of them. If your business is big, that’s affordable, but for me, when my income is rolling, it’s a burden,” she said.

“Scientifically computed”

DOLE Region XI defended the increase in a recent media briefing saying this was “scientifically computed” through public hearings that took in consideration the poverty threshold for a five-member family in the region.

DOLE XI Regional Director Atty. Randolph Pensoy told the media that wage consultations and a public hearing were conducted between November last year until February, which was attended by more than 100 workers’ groups and employers via hybrid and face-to-face meetings.

Upon the board’s review and evaluation of the existing socioeconomic conditions in the region, they observed that there have been significant changes in the consumer price index, poverty threshold, and other socioeconomic indicators based on data provided by government agencies.

For the non-agricultural sector, the new minimum daily wage will be P510, while workers for the agricultural sector will receive ₱505. This new wage rate will be applied to all minimum wage earners in the private sector within the region, regardless of their position, designation, or status, starting in March.

A petition by the Associated Labor Workers Union-Trade Union Congress of the Philippines (ALU-TUCP) asked for a P150 increase but only after the public hearings were conducted.

Pensoy said there would be no wage increases set this year, “unless there is a compelling reason.”

“We are also looking at the capacity of our employers to provide such wages,” Pensoy said.

Higher wages for dignity

The Kilusang Mayo Uno (KMU) Southern Mindanao Chapter reiterated its call for a P1,200 daily minimum living wage across the nation “to sustain a household with dignity”.

In their statement, KMU-SMR said the wage hike “does nothing to address the worsening poverty, economic hardship, and inflation that continue to burden Filipino families.”

“The reality is that many workers will still have to work multiple jobs, take on debt, or cut back on basic staples just to survive. This wage hike will not lift families out of poverty, nor will it allow workers to build a secure and decent future. It will do the complete opposite,” the labor group said.

KMU points out that the country’s labor productivity in late 2024 has risen to P112,500 per worker per quarter, and should be basis for companies to fairly compensate their workers.

“Workers are generating more value than ever, but instead of fair compensation, they are given insultingly low wage adjustments that fail to account for their actual needs,” the group said.

The group also said that rather than having different regional minimum wages, DOLE should abolish regional wage boards and provide that nationwide salary scale. (davaotoday.com)