Senate Majority Leader Joel Villanueva has filed a bill which sets living wage as a standard to determine the minimum wage.
Senate Bill No. 2140 proposed an amendment to the wage fixing criteria in the Labor Code of the Philippines to put living wage in the front and center in the determination of regional minimum wage.
The measure provides that living wage must ensure the employees’ and their families’ nourishment, clothing, shelter and education, and general well-being
“There is no sugar-coating the situation of Filipino workers – the minimum wage as presently determined is not enough for a family to live decently,’’ he added.
Citing a study of the IBON Foundation, a family of five in the National Capital Region (NCR) needs at least P1,161 a day to live decently
“This means that the NCR minimum wage is only half of the required living wage. This is especially alarming considering the country's 6.6 percent inflation rate in April 2023, which is still above the target inflation rate, and further exacerbated by the 20 percent global food price inflation, which is the highest level in two decades, according to World Bank,” Villanueva said.
“The Constitution itself guarantees to all workers the right to a living wage. This is the intent of our bill,” he added.
“It is important that we have clear standards which will serve as a basis in considering proposed wage increases to ensure a right balance in affording workers their families’ basic needs and sustainability and competitiveness of business,” he said.
In determining the regional minimum wages, the bill stressed that the “estimated cost of living for a determined size of a family in the region” shall be considered.
Other relevant factors include the “wage adjustment vis-a-vis the consumer price index; the needs of workers and their families; the need to induce industries to invest in the countryside; improvements in the standards of living; the prevailing wage levels; and, equitable distribution of income and wealth along the imperatives of economic and social development.
Villanueva pointed out that there are laws which grant reprieve to businesses on the payment of minimum wage, in recognition of their financial ability to cope with rising prices.
For example, barangay micro-business enterprises are exempt from complying with the minimum wage, while enterprises employing less than 10 employees may, in certain circumstances, also be exempted from the payment of minimum wage.