Speaker vows approval of salary hike measure

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SPEAKER Martin Romualdez yesterday vowed to have the House of Representatives approve a legislated wage hike bill for workers in the private sector after meeting with labor leaders and representatives of the country’s major labor groups last Tuesday night.

So far, Romualdez said the consensus among House members is to approve a P200 daily wage hike, an amount double what is being proposed under the Senate-approved version of the bill.

“Ang lumalabas na consensus dito sa House of Representatives, pending ongoing public consultation, baka kayang dagdagan ng P200 bawat araw ang minimum wage (The prevailing consensus here in the House of Representatives, pending ongoing public consultation, is maybe we can add a P200 to the daily minimum wage),” he said.

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The bills seeking wage increases are pending before the House Committee on Labor and Employment chaired by Rizal Rep. Fidel Nograles.

There is only a week left for the House to work on the measure as it is set to adjourn on February 7, the official start of the campaign period for the May 2025 midterm elections.

The 19th Congress will resume session on June 2 but will adjourn sine die on the 13th of the same month.

The Speaker’s meeting with Rep. Democrito Raymond Mendoza (PL, TUCP) and Rep. Jude Acidre (PL, Tingog) in his office was also attended by labor leaders, who added their input in support of their plea for a legislated wage hike.

The House leader noted that the last legislated wage increase was enacted more than three decades ago under the Wage Rationalization Act of 1989, which he said “successfully raised wages without causing massive inflation or widespread business closures.”

“If we were able to do this in the past, there is no reason why we cannot do it now, especially with careful planning and collaboration with all sectors. Hindi lang natin tataasan ang suweldo, titiyakin din natin na makatutulong ito sa ating ekonomiya (We’ll not only increase the salaries, we’ll also ensure that it will help the economy),” Romualdez said.

He, however, pointed out that there is a need to find a win-win solution that balances the interests of workers and employers, who are expected to oppose any proposal for a wage increase. 

“This is a delicate balancing act, but the House is committed to addressing the concerns of all sectors. We are working on a measure that truly reflects the spirit of bayanihan, one that uplifts workers, supports businesses, and strengthens the economy,” Romualdez said.

Romualdez vowed to expedite the House deliberations “to address the urgent need for economic relief while ensuring a balanced approach that considers the welfare of workers and the sustainability of micro, small, and medium enterprises (MSMEs).

“The House of the People is working tirelessly to craft a wage increase measure that meets the needs of our workers while ensuring that businesses, particularly MSMEs, are supported during this transition. This is a critical step toward achieving inclusive growth and addressing the immediate challenges faced by Filipino families,” he said.

The Speaker said the provisions being considered include wage subsidies and exemptions for MSMEs, which are vital to the Philippine economy.

“Our MSMEs are the backbone of our economy, and they must be protected even as we address the needs of our workers. Through wage subsidies and other mechanisms, we aim to ensure that no one is left behind,” he said.

As inflation continues to drive up the prices of essential goods and services, Romualdez said “the need for a meaningful wage adjustment is more pressing than ever.”

He underscored the broader economic benefits of a wage increase, such as “boosting household spending, stimulating local economies, and driving long-term growth.

“Higher wages mean workers have more disposable income to spend on goods and services, increasing demand across various sectors. Since consumption is a significant driver of economic growth, this increased spending stimulates business activity, generates revenue, and supports job creation. In the Philippines, where consumer spending accounts for a substantial portion of GDP, a wage hike can act as an economic catalyst,” he said.

Rep. Arlene Brosas (PL, Gabriela), a member of the militant Makabayan bloc, welcomed the House leadership’s initiative to push for a P200 wage increase, saying the “positive development stems from our workers’ persistent demands for a legislated wage increase.

“Dapat agad na ipasa ito at gawing pangunahing tungkulin ng pamahalaan (This should be passed immediately and be prioritized as a primary responsibility of the government,” she said.

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As the principal author of the National Minimum Wage Bill (House Bill 4898) and P750 across-the-board wage increase (House Bill 7568), Brosas stressed the need for a more substantial wage increase.

She cited an IBON Foundation report that the daily family living wage (FLW) for a family with five members is at least P1,207. FLW refers to the amount of family income needed to provide for the cost of living, which includes all food and non-food requirements with sufficient allowance for savings and investments for social security.

“Our workers have been demanding a P1,200 national minimum wage because that’s what Filipino families need to survive. Ito ang kailangan ng mga pamilyang Pilipino para makaagapay sa patuloy na pagtaas ng presyo ng mga bilihin at serbisyo,” Brosas said.

“Furthermore, we need a legislated national minimum wage that will standardize wages across regions. Workers should not be divided based on their regions since price increases affect the entire country equally,” she added.

HOUSE PRESSED

The labor sector is pressing the House of Representatives to pass the long pending P150 wage hike bill.

In a statement, the Nagkaisa Labor Coalition (NAGKAISA) demanded swift action from lawmakers on the measure that will give the country its first legislated wage increase since 1989.

“We cannot afford to wait any longer. With every passing day, the value of our wages continues to diminish as inflation continues to rise,” the group said.

“With more than a week left in the 19th Congress’ session before the long election break, we remain hopeful that the wage hike bill may still beat the red light,” it added.

The labor group noted that the P150 wage hike bill has been stalled in the House Committee on Labor and Employment since March 2024.

The House panel has set a public hearing today, Thursday, to wrap up its deliberations on the wage hike proposals.

The Department of Labor and Employment (DOLE) reiterated that it is not against the passage of a legislated wage hike.

In an interview, Labor Secretary Bienvenido Laguesma said they remain consistent in saying they are leaving the matter to the House of Representatives.

“Proposing laws is the mandate of Congress. The Executive is the authority when it comes to implementation,” said Laguesma.

He said all DOLE can contribute is to provide lawmakers with the scenario and other elements concerning wage-setting mechanisms.

One of which, he said, is that Regional Tripartite Wages and Productivity Boards remain the best entity to set minimum wage rates.

“We believe that when it comes to adjusting minimum wage rates, it is still best done through regional wage boards,” he said.

As for those earning above the minimum wage rate, Laguesma said employers should take it upon themselves to provide appropriate wage adjustments.

“It doesn’t have to come from employees. If the company’s operations are doing well, the employers must take it upon themselves to provide appropriate wage adjustments,” said Laguesma. – With Gerard Naval 

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