DAVAO CITY – The approved minimum wage increase in Davao Region is ‘far from enough’ to cover the prices of basic commodities, a former lawmaker said.
Former Anakpawis Party-list representative Ariel Casilao said in a statement that the wage increase is below the supposed ‘poverty wage’ and much lower than the ‘living wage’ for a family of five.
The Regional Tripartite Wages and Productivity Board (RTWPB-Davao) announced on Friday that the minimum wage increase will be implemented in two tranches for workers in sectors or industries employed in industrial/commercial and retail/service with more than 10 workers and agriculture and three tranches for workers in retail/service employing not more than 10 workers.
A P31 wage increase is given to all sectors upon effectivity of the Wage Order on June 18, P16 effective January 1, 2023, and additional P15 effective April 1, 2023, the agency said.
The region’s current minimum wage ranging from P381 and 396 will be increased to between P438 and P443 upon full implementation next year.
But Casilao added that the minimum wage should be at least closer to P1,180, which is the daily cost of living.
“Precisely, we proposed the amount of P750 as closest to the daily cost of living. Any amount lower to that is far from enough. With the weekly increases of petroleum products, prices of basic commodities – food and non-food items -- will surely increase,” he said.
KMU Southern Mindanao Region secretary general PJ Dizon said that the group pushed for a P750 hike in national minimum wage to cushion the impact of increasing prices of commodities brought about by the movement in global market price for oil.
He lamented that the increase will not be enough to support the expenses of the minimum wage earners, especially now there is a proposal to increase contributions to Philippine Health Insurance Corporation (PHIC).
“The increase is already small and yet its implementation is done in tranches, which is an insult to our workers,” he said.
He added that the last wage hike in the region was enforced in 2019.
“We asked for P750 national minimum wage because the family living wage for a family of five averages P1,080 in the country. This can ease the adverse impact of increasing prices of basic commodities on our workers,” he said.