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Wednesday, May 03, 2006
Arroyo to labor: Get ball rolling on non-wage benefits
MANILA -- President Gloria Macapagal-Arroyo on Tuesday directed Labor Secretary Patricia Sto. Tomas to monitor and ensure the implementation of the P39.765-billion Labor Day package that she promised to workers last Monday.
“Secretary Sto. Tomas will make sure that every word of her (Arroyo’s) speech is felt across all sectors through concrete action undertaken along a firm, immovable timeline,” said Press Secretary Ignacio Bunye.
Sto. Tomas, after a Cabinet meeting in Malacańang Tuesday afternoon, said the President created a tripartite committee to monitor the implementation. The group includes her, Trade Union Congress of the Philippines president Democrito Mendoza and Philippine Chamber of Commerce and Industry president Donald Dee as members.
She dismissed claims of critics who likened the package to “alms being given to a beggar” stressing that P40 billion is a big amount to be considered alms. She added if it were given to beggars, they would be “rich beggars.”
The package includes P20 billion for salary standardization; condonation of some P11.6 billion worth of surcharges and penalties for housing and salary loans under the Government Service Insurance System (GSIS) and Social Security System (SSS); and two percent savings on Pag-ibig housing loans due to lower interest.
Also included are the income tax exemptions for minimum wage earners.
Sto. Tomas noted that since 1987, when Congress passed a bill granting a P20 increase on the then minimum wage of P67 and the designation of the Regional Tripartite Wage and Productivity Board to handle all wage petitions, there had been a total of P238 in increase in minimum wage in Metro Manila.
She said they have already talked to the employers groups and they are open to giving wage increases, provided that the 12-month period gap between wage increases—unless there are calamities and other supervening events—is observed.
June 2005
The last wage hike for Metro Manila minimum wage earners, amounting to P25 to raise the minimum wage to P325, was made on June 16, 2005.
Asked if there are plans to invite members of militant labor groups to join the tripartite committee, she said “why invite someone who doesn’t believe in what you’re doing.”
Sto. Tomas said “any time Congress wants can pass a legislated wage hike, I will implement it.”
Budget Secretary Ro-lando Andaya Jr. said they are preparing a salary standardization bill that would be submitted to Congress by the third quarter of this year. He said the bill would be certified as urgent.
Tax exemption
Meanwhile, Sen. Ralph Recto on Tuesday proposed the granting of P100,000 tax exemption to individuals.
Recto said his proposal is a win-win solution both for minimum wage earners and regular income tax earners.
He noted that income beyond the P100,000 earnings of an individual annually will be subjected to a 30 percent tax rate.
At present, individual income earners with no qualified tax exemptions are taxed five percent if they are earning less than P10,000 a year. If their income is P10,000 to P30,000, they are required to pay a basic tax of P500 plus a tax rate of 10 percent of the excess over P10,000. Those earning P30,000 to P70,000 pay a base tax of P2,500 plus 15 percent of the excess over P30,000. (JMR/MSN/PE/Sunnex)
(May 3, 2006 issue)
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