In his Labor Day message, President Ferdinand R. Marcos, Jr. honored the Filipino workers as nation-builders, lauding their remarkable contributions to the growth of the national economy by dint of their sweat and toil, both here in their homeland and in all parts of the world.
Mindful of the severe economic pressures brought on by inflation and rising prices of basic goods, he ordered the review of the minimum wage “within 60 days of the anniversary of their latest wage order.” Considering that Metro Manila wages were increased on July 16, 2023, these should be reviewed by mid-May. The minimum wage in Metro Manila currently ranges from ₱573 for agriculture workers to ₱610 for non-agriculture workers.
Due to the continuing rise in prices of basic goods and services, large sections of the working class are hard pressed providing for their families’ daily needs. According to the government’s 2021 report on family income and expenditure, poverty incidence — defined as “the proportion of Filipinos whose per capita income cannot sufficiently meet the individual basic food and non-food needs” — was recorded at 18.1 percent. This is equivalent to around 19.99 million Filipinos who live below the poverty threshold of about ₱12,030 per month for a family of five.
The situation becomes even more concerning when viewed from the equity perspective. The World Bank reported in 2022 that the Philippines ranked 15th out of 63 countries in income inequality, citing that: “The top one percent of income earners contributed 17 percent of the national income, while the bottom 50 percent only captured 14 percent. Additionally, the nation has one of the highest income inequality rates in East Asia.”
Declaring that Filipino workers are mainly responsible for “fueling our economy and sustaining the very fabric of our society,” President Marcos affirmed that the government “continues to support the working class and uphold the principles of fairness, dignity, and equity across all work spaces.” He vowed that under the banner of Bagong Pilipinas: “We will usher in an era of greater prosperity where opportunities abound, creating a society where every worker is cherished, respected, and empowered to thrive.”
President Marcos’ abundant confidence in enabling the Filipino workers to achieve their fullest potentials deserves support from the employers’ sector, especially among those who are leading exponents of good governance and corporate social responsibility.
The Management Association of the Philippines (MAP) is advocating a Shared Prosperity model through several interconnected strategies: first, build a career path for the lowest workers to earn a family living wage; second, promote productivity-based pay; third, provide continuous training and development that would support innovation and market expansion; fourth, minimize pay inequality by monitoring the ratio of pay received by the chief executive officer (CEO) to average employee pay such that it does not exceed 20:1.
Finally, the government is also expanding upskilling and retooling programs to improve employability and enable workers to move across industries and occupations where there are high paying and high quality jobs.