House Committee on Appropriations Vice Chair proposes wage hike for areas below poverty threshold
In an effort to address the competing interests of businesses and the rising cost of living, the vice chair of the House committee of appropriations has suggested raising wages in areas where they fall below the poverty threshold.
Laguna Rep. Marlyn Alonte expressed support for increasing wages for minimum earners but emphasized the need for careful planning to prevent small businesses from being crippled. She noted that implementing the wage hike in tranches could prevent a major shock to the economy, echoing a proposal from Manila Rep. Joel Chua.
Chua’s proposal involves a phased increase of P100 over three years in certain regions. For instance, in the National Capital Region, Calabarzon, and Central Luzon, the increase would be P40 in the first year, P40 in the second year, and P20 in the third year. In other regions, a P35-P35-P30 scheme has been suggested.
Alonte emphasized the importance of proper planning and coordination with increases in nontaxable rice subsidies to ensure that employers can afford the wage hike. She also highlighted the challenges of implementing a P100-wage hike in areas where the minimum wage is already relatively high, suggesting a delayed implementation in some regions.
According to Alonte, the current minimum daily wage in Calabarzon ranges from P385 to P520, with a significant gap between the minimum wage and the poverty threshold set by the Philippine Statistics Authority.
Overall, the proposed wage hike is aimed at addressing the needs of minimum earners while also considering the impact on businesses and the economy as a whole.
