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Bello orders review of minimum wage amid oil price hikes

Philippines | National

Bello orders review of minimum wage amid oil price hikes

By Faith Argosino

Department of Labor and Employment (DOLE) Secretary Silvestre Bello III has ordered the review of the country’s minimum wage amid the surging prices of oi petroleum products that is aggravated by the ongoing conflict between Russia and Ukraine.

In a statement, Bello said that he had directed the Regional Tripartite Wages and Productivity Boards (RTWPBs) nationwide to expedite the review of the minimum wages to help workers and their families cope with the current crisis.

“The skyrocketing prices of oil products caused by the ongoing conflict between Russia and Ukraine may be a compelling ground for the wage boards to recommend adjustments in the minimum wages of workers,” Bello said on Wednesday, March 9.

Moreover, he said that the current daily minimum wage in the National Capital Region (NCR), which is P537, may no longer be enough to cope with the price of basic commodities and bills.

He added that the RTWPBs nationwide had received petitions for minimum wage increases in their respective areas.

“Setting and adjusting the wage level is one of the most challenging part of minimum wage fixing. The minimum wage cannot be very low as it will have very small effect in protecting workers and their families against poverty. If set too high, it will have an adverse employment effect. There should be a balance between two sets of considerations,” Bello explained.

“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 P750 in the minimum wage nationwide,“ he added.

The labor chief also ordered the RTWPBs to submit their recommendations by the end of April.

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