Labor & employment

Wage hikes, slowest under Duterte

May 1 wage hikes

(UPDATED May 1, 2019) Did you know that among all post-EDSA presidents, the minimum wage has increased at the slowest pace under Pres. Rodrigo Duterte?

In his first three years in office, the minimum wage in NCR (non-agricultural rates and including allowance) has only increased by an average of 9.8 percent. At the start of his term, the minimum wage in NCR was Php454 to Php491 and are today pegged at Php500 to Php537.

During similar periods in their respective terms, the minimum wage in NCR has increased by 32.6% under Corazon Aquino (from Php89 to Php118); 22.9% under Fidel Ramos (from Php118 to Php145); 17.0% under Joseph Estrada (from Php198 to Php213-250); 13.1% under Gloria Arroyo’s first term as Estrada’s replacement (from Php213-250 to Php243-280) and 26.9% in her “second” term (from Php243-280 to Php313-350); and 16.1% under Benigno Aquino III (from Php367-404 to Php429-466).

Wage rates compared above are since the passage of the Wage Rationalization Act of 1989 (Republic Act 6727) and exclude wage adjustments on or before May 1, as reported by the National Wages and Productivity Commission (NWPC). The wage rates under Corazon Aquino cover her three last years in office since RA 6727 was passed in June 1989, while the period under Joseph Estrada includes wage rates up until his ouster in January 2001.

PH labor condition, worst in Southeast Asia

Filipino workers are worse off than most of their counterparts in Southeast Asia. Consider these comparative data culled from various regional and global institutions:

Unemployment is worst in the Philippines:

  • The Philippines has the lowest labor force participation rate at 60.7%, compared to Cambodia (86.6%); Vietnam (76.3%); Lao (74.5%); Brunei (69.5%); Indonesia (69.0%); Thailand (68.1%); Malaysia (68.0%); Singapore (67.7%); and Myanmar (61.5%), ASEAN Secretariat in its ASEAN Key Figures 2018 report (comparing 2017 data)
  • The Philippines has the highest unemployment rate at 6.6%, compared to Thailand (1.2%); Cambodia (1.6%); Lao (1.8%); Vietnam (2.0%); Myanmar (2.1%); Singapore (3.1%); Malaysia (3.4%); Indonesia (5.3%); and Brunei (6.1%), according to the ASEAN report.

Wages in the Philippines are among the lowest:

  • According to a 2018 survey of JETRO (Japan External Trade Organization), the base salary of a Filipino manufacturing worker at US$220 a month is much smaller than Malaysia (US$413); Thailand (US$413); Indonesia (US$296); and Vietnam (US$227).
  • Year-on-year wage hike for manufacturing workers in the Philippines in 2017-2018 and 2018-2019 averaged 4.8%, much slower than Indonesia (8.1%) and Vietnam (7.1%) that are already providing higher base wages to their manufacturing workers; and while faster than Malaysia (4.2%) and Thailand (4.2%), wages there are already almost twice compared to the Philippines, based on the JETRO survey.

Official poverty in the Philippines is among the highest:

  • Based on World Bank data from its Poverty and Shared Prosperity 2018 report, the mean consumption or income per capita in the Philippines is growing every year at just 1.4% (2009 to 2015), way behind Malaysia (5.9%, 2011 to 2015); Indonesia (4.8%, 2015 to 2017); Vietnam (3.7%, 2010 to 2016); and Thailand (3.0%, 2010 to 2015).
  • Comparing 2015/2016 national poverty incidence, the Philippines recorded the highest rate at 21.6%, according to the ASEAN Key Figures 2018 report. This was way higher than the poverty rates in Malaysia (0.4%); Vietnam (7.0%); Thailand (8.6%); and Indonesia (10.9%). ###
Advertisements
Standard