Php750 minimum wage possible, non-inflationary and good for the economy–​IBON​

Features Philippines Jun 8, 2018 at 3:35 pm

barya_beamandgoContrary to government and big employers’ claims, research group IBON said that raising minimum wages nationwide to Php750 is doable, need not spike prices further, and will benefit millions of Filipino workers and the economy. The group cited the following reasons:

  1. Raising minimum wages nationwide to Php750 is doable if owners of establishments allow a small portion of their profits to go to their workers instead. Firms and the economy as a whole have more than enough profits to support this.

    Data from the 2015 Annual Survey of Philippine Business and Industry (ASPBI) of the Philippine Statistics Authority (PSA) shows that the 34,740 establishments employing 20 or more have Php1.7 trillion in total profits and 4.5 million employees. Raisingthe average daily basic pay of wage and salary workers from the nationwide average of Php378.71 to Php750 transfers just Php473.2 billion to workers’ pockets, which is only a 28.3% decrease in profits. Workers will meanwhile get to take home an additional Php8,076 per month on average.

    This still falls short of the family living wage and does not necessarily bring everyone up to a decent standard of living but such an increase will provide immediate relief to millions of Filipino workers and their families.

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