A ‘mere P22 hike, a heartless decision’

THE Trade Union Congress of the Philippines (TUCP) on Tuesday led labor in expressing deep disappointment over how “little” the approved wage hike of P22 for Metro Manila is.

In a statement, TUCP spokesman Rafael Mapalo said, “[The] TUCP is disappointed at how little the RTWPB [Regional Tripartite Wage and Productivity Board] thinks workers deserve. While we do not wish any more delay in the implementation of the wage decision, we will file a petition for reconsideration regarding this heartless decision.”

They are “doubly disappointed” that the increase is not across the board, as petitioned, he said.

The TUCP had filed a wage petition in March calling for a P75 across-the-board wage increase, citing the continuous rise in the prices of basic commodities.

On Monday night the wage board for the National Capital Region issued an order to increase the minimum daily wage from P382 to P404.

Mapalo said that despite their disappointment over the small wage hike, they still welcome the wage board ruling and will push for its immediate implementation.

Meanwhile, Avito Sto. Tomas, assistant regional director of the Department of Labor and Employment-National Capital Region (DOLE-NCR), said the increase takes effect on July 1.

He clarified reports that minimum-wage earners will be pushed to pay income tax because of the P22 across-the-board wage increase.

“The minimum wage ordered in 2008 precisely exempts minimum-wage earners from paying income tax…They remain exempted despite the increase in wages,” Sto. Tomas said, adding that the increase does not cover overtime pay and night differential for those working from 10 p.m. to 6 a.m.

He said raising the daily minimum wage from P382 to P404 will not affect the tax exemption because it is meant merely to “restore” the purchasing power the workers enjoyed during the last wage increase in 2008.

The last wage hike in 2008 added P18.49 to the daily salary of minimum earners in Metro Manila. Last year the board also decided to exempt minimum salary receivers from paying income tax.

NCR’s minimum-wage earners in nonagricultural sectors are expected to receive P404 monthly salaries from the original P382, while those in the agricultural sector will get P367 monthly from their previous P345.

The wage hike does not include the cost of living allowance since the P22 increase will be added to the basic wage received by minimum-wage earners monthly.

Ibon: Lowest wage hike since Marcos

After nine years and the recent approval of a P22 wage hike, the Arroyo administration now holds the record of having the highest economic growth but the lowest wage increase, local research group Ibon Foundation Inc. said.

In a statement, Ibon said the real wage in February 2001 or the start of the Arroyo presidency was pegged at P237, implying an increase of just P5 over her term. The nominal wage in February 2001 was P250.

The P22 wage hike approved on Monday for Metro Manila only translates to a real or inflation-adjusted minimum wage to only P242 based on 2000 prices.

“The Arroyo administration has the longest-running term since Marcos but has seen the smallest increase in workers’ real wages over the last nine-and-a-half years,” Ibon said.

“This trivial wage increase compares very unfavorably with corresponding increases of P82 during the Aquino administration, P16 over the Ramos administration, and P22 over the Estrada administration,” the group added.

Ibon said all the figures were inflation-adjusted figures based on 2000 prices.

“The supposed momentum of 36 straight quarters of economic growth has been accompanied by an unprecedented flattening, over nearly a decade, of real wages. The outgoing Arroyo administration has the triple distinction of presiding over the fastest economic growth, highest unemployment and lowest wage increase over its term since the Marcos dictatorship,î Ibon said.

Factors considered

Aida Andres, board secretary of DOLE’s RTWPB-NCR, said that in the public hearings with stakeholders, they had to consider numerous factors.

She said that among other things, the board had to consider “the need of workers in Metro Manila, the capacity of employers to accommodate the wage increase and the effect of the increase on the country’s economy.”

The board also considered the inflation rate from 2008 to 2010.

Besides the increase, employers are also expected to feel the impact of the wage increase on the monthly add-ons—Social Security System, Pag-Ibig, PhilHealth and worker’s compensation.

All in all, employers must shell out P533 a day for the worker’s basic salary of P404 daily, plus additional benefits. The P533 excludes overtime pay and night differential.

Employers are also mandated by law to allow their employees to take 16 days’ leave with pay, 11 days’ holiday and five days’ incentive pay.

Exemptions expected

Meanwhile, Andres explained that small and micro establishments, comprising 98 percent of the more than 199,000 establishments in Metro Manila that will be affected by the wage hike, can appeal to the board to exempt them from paying their workers extra P22 a day.

“They can apply for exemptions,” she said.

Those who can apply for exemptions are agricultural and retail businesses with not more than 10 employers, hospitals with not more than 100 beds and manufacturers with less than 10 workers.

Other regions

Patricia Hornilla, deputy executive director of the National Wages and Productivity Commission, a subagency of the Labor department, said there are pending wage-hike petitions outside Metro Manila.

Hornilla said that Region 7 in Visayas posted the highest appeal for a wage hike, seeking from P50 to P128.60 daily.

(S. Fabunan, C. Ordinario)