Buying power of
workers minimum pay down to P200 a day
September 1, 2018
QUEZON CITY – THE
buying power of workers standard daily minimum pay in the private
sector nationwide fell to P200 a day beginning today, according to
monitoring by workers group Associated Labor Unions-Trade Union
Congress of the Philippines (ALU-TUCP).
Without a serious
government social safety program in place and a significant wage
increase to address the worsening economic depression, a decreasing
buying power of wage bears harmful effect to workers’ health and
capacity to produce quality goods and services needed by employers
and business owners to thrive.
In their monitoring and
evaluation of the inflation versus the daily minimum wage, ALU-TUCP
spokesperson Alan Tanjusay said the average total daily minimum wage
nationwide fell today to P200 a day effective this week from P208.83
in June 2018.
In June 2018, the total
average of different daily minimum wage rates across the country was
P335 and its equivalent buying power is P208.83.
In April 2018, the total
average rate of various daily minimum wage rates nationwide was
P330.47 and its equivalent buying power to buy goods and pay for
services was P208.38 a day. In October last year, P327 and its
equivalent capacity to buy goods and pay for services is P212.45 a
“What can workers buy for
him and for his family nowadays with the value of his minimum pay of
P200 a day?” Tanjusay said warning: “without government and
employers interventions, this amount will go down further next
According to the National
Economic Development Authority (NEDA), the amount needed by a family
of five in order to live decently is P44,000 a month or P1,400 a
The segment of work force
already affected by the crisis are those entry-level, rank-and-file,
contractual, short-term, and Endo (end-of-contract) employees
receiving minimum pay working in manufacturing and services sector.
However, the most heavily
affected segment of workers by high inflation and decreasing
purchasing power are those 11 million unemployed and those 15.6
million workers working in the informal economy.
“The unemployed obviously
are scraping what’s left at rock bottom and very susceptible to any
means to survive. While workers in the informal economy – since they
have no fixed income – are also very insecure,” Tanjusay said.
With this, the group
expects a lower output contribution to the country’s Gross Domestic
Product (GDP) by workers affected by shrinking value of their pay
and continuously rising prices.
The shrinking value of
their salary, the group says, impacted the workers health and their
productivity particularly their capacity to produce quality goods
and services needed by employers and business owners to prosper.
“With the poor workers
option to buy quality and nutritious food for him and for his family
has been decreasing, expect an unhappy and less productive employees
in the weeks ahead. Take note that these very vulnerable segment of
workers are already have no security of tenure, no fixed income,
inadequate social protection benefits and confronted by difficult
and stressful external forces,” said Tanjusay.
TUCP Party-list Rep.
Raymond Mendoza has filed a bill in the House of the Representatives
seeking a P320 a day across-the-board wage increase for workers in
manufacturing, agriculture and service sectors.
The ALU-TUCP has also
sought government for a P500 monthly grocery subsidy for minimum
wage earners to help them cope with rising inflation and eroding
The group also has
petitioned the 17 regional wage boards nationwide to increase
workers’ pay by P320 a day. However, only nine regional wage boards
have made wage adjustments since May this year ranging from P10 to
P56 a day on installment basis.