THE Department of Labor and Employment (DOLE) yesterday affirmed observations that the true value of wages is being eroded amid the soaring inflation rate in the country.
In a television interview, Labor Secretary Bienvenido Laguesma said he agrees with labor groups that the true value of wages has gone down due to the rising prices of basic commodities and services.
“It is clear that we are seeing an erosion of real wages because of the high inflation rate,” said Laguesma.
Last Friday, the Philippine Statistics Authority (PSA) reported that the inflation rate last October had surged to 7.7 percent.
The latest inflation rate is the highest since the 7.8 percent recorded in December 2008 amid the global financial crisis.
According to several labor groups, the P570 minimum wage in the National Capital Region is actually worth P494 as of October, with P76 having been shaved off its real value.
The labor groups have said that the erosion of real wages due to inflation makes it necessary to implement a new round of wage hikes.
According to Laguesma, all Regional Tripartite Wages and Productivity Boards (RTWPBs) are already monitoring the economic situation in their respective areas.
He said the assessments are being made in order to determine if the situation warrants a new round of wage hikes.
“We are not disregarding the recent developments. This is why the regional wage boards have been directed to monitor the situation and determine if it warrants another round of wage adjustment,” said Laguesma.
