The House Committee on Labor and Employment chaired by Rizal Representative Juan Fidel Felipe Nograles is set to vote next week on the three bills providing for a legislated minimum wage increase for workers in the private sector.
Nograles announced this before the committee ended its second hearing on the three bills, namely: House Bills 514 and 7871, providing for a P150 across-the-board increase in the salary rates of employees and workers in the private sector, authored by Representative Jolo Revilla and Deputy Speaker Raymond Mendoza, respectively; and HB 7568, mandating a P750 across-the-board increase in the salary rates of employees and workers in the private sector to attain a living wage by Gabriela Party-list Representative Arlene Brosas.
“Due to time constraints, the committee will hold one last hearing where we will invite all committee members to vote on these three measures. We just need more time to deliberate and study all the positions and arguments presented by all our stakeholders in this hearing,” Nograles said.
Mendoza expressed hope that the committee’s decision on the bills can be announced on May 1, Labor Day.
“It is time to act on the bills as it has been 35 years since the last legislated minimum wage increase was enacted.”
Brosas said it was time to act on the bills as it has been 35 years since the last legislated minimum wage increase was enacted.
“Panahon na para tapusin ang pag aantay na ito, ipasa na ng kapulungang ito ang legislated, makabuluhan na dagdag sahod na nakatanaw sa pag-abot ng nakabubuhay na sahod,” the veteran legislator said.
The seasoned lawmaker noted that workers’ groups were able to clearly explain during the hearing the basis for their plea for a legislated minimum wage increase.
Economist Emmanuel Leyco explained how an increase in wages will not result in business closures, citing data from the Annual Survey on Philippine Business and Industry.
“Hindi po totoo na maraming nagsasarado dahil lahat po dito mula sa micro, small medium, large (enterprises).”
“Nakalagay po sa Philippines po nakalista po 114 percent kinita. So kasama po doon ang kasalukuyang sweldo, ngayon po yung 114 percent saan po ba napupunta doon? Napupunta po yun sa retained earnings. So doon po siguro pwedeng mag usap ano ba ang pwedeng ibahagi sa labor cost. Hindi po totoo na maraming nagsasarado dahil lahat po dito mula sa micro, small medium, large (enterprises). Ang kanila pong revenue per expense ratio ranges from 110 percent to 116 percent,” Leyco noted, adding, “hindi po sila lugi.”
National Wages and Productivity Commission Executive Director Maria Criselda Sy narrated that since RA 6727, or the Wage Rationalization Act, became law in 1989, the Philippines rationalized the minimum wage determination from a single rate to a regionalized rate, taking into consideration the development in the different regions of the country.
Sy added that the highest minimum daily wage rates in ASEAN countries (March 2024) in US dollars is found in Metro Manila.
Opposing the wage hike was the Employers Confederation of the Philippines. ECOP Vice President Anton Sayo said the proposed legislated wage hike may negatively impact the attractiveness of other regions for labor industries and enterprises.
Margarita Refaldo of the Philippine Trade and Workers Organization said that they are not asking for a very big hike in wages.
“Hindi naman po kami humihingi ng malaki at hindi naman kami hihingi ng sobra. .Ang hinihingi lang po namin bilang mga mangagawa na siyang nagtataas ng ekonomiya ng ating bansa ay makakabuhay para po para sa sweldo na masasabi natin na magkaroon ng maayos at disenteng pamumuhay ang mga simpleng workers,” Refaldo explained.
