Labor leader Sonny Matula says it is high time for the government to increase the daily minimum wage of workers in the country by at least P150 to ease inflation further. (Photo from his Facebook page)
MANILA, Philippines — The government is encouraged to further ease inflation by increasing minimum wage of workers in the country.
To do this the government should at least increast the minumum wage by at least P150.
Sonny Matula, Labor lawyer and Federation of Free Workers head, increasing the daily minimum wage by at least P150 would boost the people’s purchasing power, which may further stimulate the country’s economy.
“There is a significant slowdown in inflation for January 2024 at 2.8 percent, coupled with the PSA [Philippine Statistics Authority] report of a noticeable reduction of unemployment in the last two months of 2023,” Matula, who ran but lost in the 2022 senatorial race, said in a message to INQUIRER.net.
“It seems these PSA data have something to do with the increase of purchasing [power] of workers, who are also consumers,” he pointed out.
READ: P40 hike in Metro Manila minimum wage still not enough – senators
On Wednesday, the PSA said the country achieved a new record low in unemployment rate in December 2023 with 3.1 percent – lower than 3.6 percent logged in the previous month.
Matula stressed the latest government data encourages a legislated daily wage increase to help workers deal with the unrelenting rise in the prices of goods.
“Additional income in the hands of workers, who are also consumers, rather than causing inflation, contributed positively to the economy by creating jobs and stimulating economic growth,” he said.
A bill aiming to increase the minimum wage of private sector employees by P100 has reached the Senate floor.
READ: P100 daily pay hike for private workers pushed
If Congress finally approves this measure, it would be the first legislated wage hike for the private sector since 1989 with the enactment of the Wage Rationalization Act.
Currently, the daily minimum wage of non-agriculture workers in Metro Manila is P573 to P610, according to the latest data from the Department of Labor and Employment-National Wages and Productivity Commission.