Wage setting in the PH: Striking the balance

As the Philippine Congress adjourned sine die on June 13 without reconciling the conflicting House and Senate versions of a proposed across-the-board minimum wage increase, the quest for attaining a living wage goes on.

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The House of Representatives had earlier passed a bill mandating a 0200 daily wage hike for private sector workers. In contrast, the Senate version—approved last year—offered a more modest 100 increase. The inability to harmonize these proposals defers the provision of tangible relief to millions of Filipino workers struggling to cope with the rising cost of living.

For context, the current daily minimum wage in Metro Manila ranges from 0610 to 0645, while in other regions it falls significantly lower. Ibon Foundation, an independent economic think tank, pegs the living wage in Metro Manila at approximately 1,217 per day nearly double the prevailing minimum. This stark disparity underscores the reality that many workers are not earning enough to meet their families' basic needs despite working full-time.