PH’s average minimum wage can’t feed a five-member family

For a breadwinner in a five-member family in Metro Manila, this falls short of P686.49, as the family daily living wage in NCR is P1,190, according to the economic think tank IBON Foundation.

By MAVIC CONDE
Bulatlat.com

ALBAY, Philippines — While Ferdinand Marcos Jr.’s third State of the Nation Address emphasized plans to create high-paying quality jobs, the ordinary Filipinos’ demand for a significant wage hike remains unmet.

A static wage means that the country’s typical minimum wage remains at P430 (USD 7.35), as it was in the first half of this year.

Bulatlat’s analysis of government data and the BusinessWorld’s monthly real wages report reveals that only the National Capital Region has a real wage above the typical minimum wage with P503.51.

For a breadwinner in a five-member family in Metro Manila, this falls short of P686.49, as the family daily living wage in NCR is P1,190, according to the economic think tank IBON Foundation.

The family living wage (FLW) is the income required by a household to cover food and non-food expenses, whereas the real wage is inflation-adjusted.

Ilocos Region (Region I), Cagayan Valley (Region II), CALABARZON (Region IV-A), Central Luzon (Region III), Western Visayas (Region VI), Central Visayas (Region VII) and Davao Region (Region XI) also have above-typical minimum wage rates but theirs slid back to below-average once inflation is accounted.

Inflation rates in five of these regions exceed the government’s three percent target for this year, widening the FLW gap for a family of five in June 2024.

Hence, in the same period, a family breadwinner in Central Visayas should’ve had an additional P905.39 for daily basic pay, P804.65 for Davao Region, P772.2 for Central Luzon, P742.55 for Cagayan Valley, P706.66 for CALABARZON and P652.06 for Western Visayas.

The gap also widened for Ilocos Region, and NCR, despite lower inflation rates, as the government’s selected monitored goods continue to rise between December 2022 and June 2024.

Not enough for single Filipinos, too

Minimum wage earners in the bottom tiers have lower take-home pay, and even single Filipinos find the minimum wage inadequate.

RJ Ledesma of Puerto Princesa told Bulatlat that he makes around P8,000 – P10,000 (USD 137 – USD 171) per month as a sales staff. His monthly expenses include electricity, water, food, transportation and room rent.

According to him, in his four years as a minimum wage worker, he hasn’t felt the little wage increase over the years because prices soared just the same. He said he’s able to give cash to his parents when he receives an incentive worth P4,000 to P7,000 (USD 68.40 – USD 120) for meeting the sales quota, which does not happen often.

He’s aware that if a single person like him finds the minimum wage insufficient, what more for the majority of minimum wage workers who aren’t single and have family responsibilities? “Honestly, even P10,000 is not enough,” he said.

Ronel Garcia, who is also from Puerto Princesa, shared the same sentiment, noting that not only are basic goods expensive, but so are transportation fares. “Our daily expenses are higher than our basic pay when you’re commuting.”

He still has to do multiple side jobs and live on a tight budget since he can’t rely on a P9,000 to P9,5000 (USD 154 – USD 162) monthly salary to help his father pay the bills.

As of June 2024, the monthly minimum wage rate in MIMAROPA is P8,591, which is P4,140 short of the monthly poverty threshold for a family of five in the first quarter of 2023, according to IBON Foundation.

MIMAROPA is in the bottom five regions with the lowest minimum wage rates in the country.

The non-government organization Philippine Network of Food Security Programs (PNFSP) in a statement urged Marcos to increase workers’ wages as a long-term solution since it enhances the Filipinos’ purchasing power and enables them to afford quality food.

Non-food expenses, such as electricity, are also rising. Power for People Coalition convenor Gerry Arances said in a statement that “electricity rates continue to soar, with a P430 increase in monthly bills for an average household just this month alone.”

According to him, Marcos promised to strengthen the purchasing power of Filipinos through lower power costs as a priority for his administration, and that renewable energy is the way forward.

“We’ve yet to see either of these come to light,” Arances said. (RVO) (https://www.bulatlat.org)

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