AS THE implementation of the P33 new wage hike in Central Visayas draws near, a Cebu-based progressive group is calling on the government to abolish regional wage boards throughout the country, arguing that a national minimum wage should be established instead.
Jamie Paglinawan, Bagong Alyansang Makabayan (Bayan) Central Visayas chairman, said there should be a national wage body to address the persistent issue of wage disparity in the country.
“Nagduso mi nga wagtangon ni mao nga dili na regional wage board ang motakda og usa ka wage legislation na gyud motakda pinaagi sa usa ka minimum wage,” he said on Tuesday, Sept. 19, 2023.
(We are pushing to eliminate this so that the regional wage board will no longer set the minimum wage instead it will be set by a wage legislation.)
Paglinawan pointed out that the minimum wage for the non-agriculture sector in the National Capital Region ranges from P570 to P610, while in Central Visayas it ranges from P387 to P435.
The call for a national minimum wage is critical, particularly in Central Visayas, which is preparing for a P33 wage hike that will be implemented on Oct. 1.
Critics like Bayan Central Visayas argued that the current regional wage system often results in wage disparities, causing economic imbalances and hardship for lower-wage workers.
The group said a national minimum wage would ensure uniformity and fairness in compensation across the nation.
They also contend that a national minimum wage would better align with a constitutional mandate to provide workers with wages that enable them to live decently under Section 3 of Article 13 of the Constitution.
This provision stresses the importance of providing workers with compensation that allows them to meet their basic needs and maintain a decent standard of living.
Paglinawan emphasized that the existing regional wage board setup has failed to bring wages closer to the concept of a living wage required.
The living wage is the minimum income required for a family of five to sustain their daily needs.
Citing data from the Ibon Foundation, Paglinawan said the living wage for a family of five to live comfortably should be P1,160 a day, or P25,226 per month.
In 1989, the Philippines established the framework for determining minimum wage rates through Republic Act 6727, or the Wage Rationalization Act.
This legislation gave rise to the Regional Tripartite Wages and Productivity Board (RTWPB), which is responsible for monitoring economic activities and periodically revising minimum wages based on various crucial factors.
Among these factors, the RTWPB places significant emphasis on a region’s economic growth rate when setting minimum wage levels. This rate serves as a vital indicator of the local economy’s overall health and its capacity to sustain higher wages. Regions experiencing robust economic growth often witness more substantial increases in their minimum wage rates.
The wage board considers living costs and inflation as pivotal determinants of minimum wages. Elevated living costs, typically prevalent in urban areas, can necessitate higher wages to meet the basic needs of workers. The influence of inflation on purchasing power further accentuates the necessity for periodic wage adjustments.