Labor Chief Urges Necessary Review of Minimum Wages Across the Country

On Wednesday, Labor Secretary Silvestre Bello III urged the Regional Tripartite Wages and Productivity Boards (RTWB) to review the country’s minimum wages which he believes may no longer be sufficient for workers as the prices of fuel, basic goods, and utilities continue to skyrocket.

“The current daily minimum wage in the National Capital Region (NCR), for instance, of ₱537 may no longer cope with the price of basic commodities such as food, electricity, and water bills,” expressed Bello, who is hopeful that the respective RTWBs will be able to present their recommendation by end-April.

“Setting and adjusting the wage level is one of the most challenging parts of minimum wage fixing. Minimum wage cannot be very low as it will have a very small effect in protecting workers and their families against poverty,” added Bello. “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 ₱750 in the minimum wage nationwide.”

“That’s why I said, it’s probably time for you (Regional Tripartite Wages and Productivity Boards) to work on this petition to see how we can address the concerns of this petition, taking into account the position of our stakeholders,” he affirmed. Bello furthered that RTWBS should work in cooperation with the National Economic Development Authority (NEDA), the Department of Trade and Industry (DTI), and representatives from both the labor and employers groups in monitoring wage levels, assessing the economic factors, as well as provide recommendations for the adjustment of minimum wages.

RTWBs across the country have been receiving petitions for minimum wage increases in their respective areas. However, Bello notes that “if set too high, it will have an adverse employment effect. There should be a balance between two sets of considerations.” The only time the minimum wage in Metro Manila was increased was in 2018 under the Duterte administration.

The conflict between Russia and Ukraine has significantly led to soaring oil prices, which have been on the rise since 2021. On Tuesday, a huge jump in fuel prices was implemented by firms putting diesel at almost a ₱6 increase. Despite this, the suggestion of lawmakers to declare a state of economic emergency was shunned by Energy Secretary Alfonso Cusi believing that the move was unnecessary.

Sources: Rappler, GMA News