Bulatlat - The Philippines's alternative weekly magazine

Legislated wages have not kept up with the high and rising cost of living. Wage rates across regions are even more miserable. The Arroyo administration’s economic managers cannot continue flaunting growth figures because behind these rosy figures, Filipinos continue to face harsh realities of widespread poverty and uncertainty of survival.

A higher per capita income does not necessarily mean that Filipinos’ lives have improved under the stewardship of President Gloria Macapagal-Arroyo, according to independent think-tank IBON Foundation.

Government economists recently said that per capita income, or the share of each citizen in the country’s wealth as measured by the Gross Domestic Product (GDP), is estimated to hit $1,463 (P76,661 at P52.50:$1) by end-2006 from $1,200 in 2004 and $1,040 in 2000. Socio-economic Planning Sec. Romulo Neri said this was the best per capita income level of the Philippines in the post-war era.

But this higher per capita income does not translate to a better life for the ordinary Filipino. First, broad income disparities continue to widen in the country, something even government planners admit. According to the 2003 Family Income and Expenditure Survey (FIES), the poorest 10% of the country’s families account for only 1.8% of total income while the richest 10% own 36.8 percent.

If these percentages were applied to the estimated end-2006 GDP of P6.7 trillion, then the poorest 10% would have a share of only P14,889 per person of the country’s wealth while the richest 10% would have a per capita income of P308,143. (See Table)

Table. Per Capita Income by Income Decile
Decile	Share of Total GDP	per capita (family)	per capita (individual)
First	118,987,501	74,344	14,869
Second	191,176,228	119,448	23,890
Third	248,250,416	155,108	31,022
Fourth	310,042,062	193,716	38,743
Fifth	383,852,908	239,833	47,967
Sixth	476,871,187	297,951	59,590
Seventh	604,162,177	377,483	75,497
Eighth	791,884,910	494,773	98,955
Ninth	1,108,857,827	692,820	138,564
Tenth	2,465,914,784	1,540,715	308,143
Source of basic data: 2003 Family Income & Expenditure Survey, National Statistical Coordination Board Note: Based on an average family size of five

Second, legislated wages have not kept up with the high and rising cost of living. The legislated daily minimum wage of P325 in Metro Manila is only 41% of the estimated daily cost of living for a family of six of P681.29 (as of August 2006).

Wage rates across regions are even more miserable. The lowest wages are P162 daily for non-agricultural workers, P165 for agricultural workers and P192 for workers in retail and service establishments. In these regions, an agricultural family needs P506.10 while a non-agricultural family needs P533.12 in order to attain decent living standards. In the poorest regions, therefore, wages are falling by as much as 70% of decent living.

Hence, the Arroyo administration’s economic managers cannot continue flaunting growth figures because behind these rosy figures, Filipinos continue to face harsh realities of widespread poverty and uncertainty of survival. Posted by Bulatlat

Permission is granted to reprint or redistribute this article, provided its author/s and Bulatlat are properly credited and notified.