Lawyer Roy Buenafe, DOLE-7 regional director | CDN Photo/ Pia Piquero
CEBU CITY, Philippines — As progressive labor groups amplify their call for a P1,200 national minimum wage ahead of Labor Day, the Department of Labor and Employment in Central Visayas (DOLE-7) said that any wage adjustment must undergo a thorough study to ensure it would not destabilize the economy.
In an exclusive interview with CDN Digital, Lawyer Roy Buenafe, regional director of DOLE-7, emphasized that the proposal was being carefully evaluated by the Regional Tripartite Wages and Productivity Board (RTWPB), which would be tasked with balancing the needs of workers and the capacity of businesses to provide fair wages.
“Ang atong pagpanday og balaod in terms of minimum wage is still with the Regional Tripartite Wage and Productivity Committee Board. Kini nga ahensya, mao ni ang nagtuon aron nga mabalanse nato ang panginahanglan sa atong mamumuo ug ang kakayahan sa pagpanweldo sa atong mga pagpapatigayon,” Buenafe said.
(The making of the law in terms of minimum wage is still with the Regional Tripartite Wage and Productivity Committee Board. These agencies, these are the ones studying so that the needs of our workers and the capability of the employers to pay them.)
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He noted that the wage-setting process would consider multiple economic indicators, such as the consumer price index and inflation rates.
“Kining duha ka matang sa atong issue of wage fixing dako kaayo ni nga trabaho sa atong Regional Tripartite Board kay sa pagkakaron man gud daghan kaayo ug factors atong gitan-aw,” he added.
(These two ways in our issue of wage-fixing is really a big job for the Regional Tripartite Board because for now there are many factors that we are looking into.)
Buenafe stressed that DOLE’s position would be to continue studying the ₱1,200 minimum wage proposal to avoid any hasty decision that could harm both workers and businesses.
“Padayon namong tun-an ang maong proposal aron nga dili ta mapandol sa atong mga desisyon nga pagahimuon,” he said.
(We continue to study our proposal so that we will not fail in the desisyon that we make.)
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Impact on SMEs
Buenafe also warned that a significant wage increase could heavily impact small and medium-sized enterprises (SMEs), which comprised over 90 percent of businesses in the country.
“In terms of wage fixing, kining pagpanweldo nato dako kaayo ni og epekto sa atong SMEs… Kung too much or too high ang atong sweldo sa atong mga mamumuo diha sa micro and small, ang pangutana kaya pa ba kaha ni sa atong mga negosyanteng gagmay?” he said.
(In terms of wage fixing, paying salaries is a big effect in our SMEs…If the salary of our workers in the micro and small, is too much or too high, the question is, can the small businessmen take it.)
He reiterated that the RTWPB would play a crucial role in dissecting factors affecting wage capacity, especially in regions like Central Visayas.
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Is the current wage setting still effective?
When asked if the current way of setting minimum wages still works well for Filipino families, Buenafe said it would still be important and useful.
He explained that this system would help make sure wages are fair by considering both the needs of workers and the ability of employers to pay.
“Yes, as of now, ang RTW duna gyud siyay role aron pagtuon sa minimum wage fixing. So far kini nga mechanism for so many years I believe effective pa gihapon ni tungod kay gitan-aw nato nga ang paglatid sa minimum wage. Dili pwede ug unilateral lang ang decision. We should balance the needs of the workers as well as the capacity of the management,” he said.
(Yes, as of now, the RTW, they have a role to study the minimum wage fixing. So far, this mechanism for so many years are still effective because we looked at how the minimum wage was spread. It cannot be a unilateral decision. We should balance the needs of the workers as well as the capacity of the management.)
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Labor groups’ push for higher wages
Meanwhile, labor groups across the country are intensifying their demand for a P1,200 minimum wage, citing the widening gap between wages and the cost of living.
Rauf Sissay of Bayan Muna Partylist-Davao and Kilusang Mayo Uno-Southern Mindanao said workers continue to endure worsening economic hardships due to inflation and high prices of basic commodities.
“Tungod ginarecognize natu ang kahimtang sa kasamtangan nga nagapadayon ang pagpig-os sa ekonomikanhon nga kahimtang sa atoang mga mamumuo ug kominidad nga labing igo sa inflation or grabeng pagsaka sa palaliton,” Sissay said.
(Because we recognized the dire economic situation of our laborers and community who are really affected by the inflation or the rise of the prices of goods.)
Despite persistent lobbying since 2023, Sissay noted that the proposal remains pending in Congress. He also called for the immediate approval of a P200 across-the-board wage hike to offer short-term relief to workers.
Other labor leaders, including Ramon Rusil of Nagkahiusang Mamumuo sa Philippines Japan Active Carbon-FDLO, expressed frustration at the perceived lack of urgency from the Marcos administration.
They also pointed to IBON Foundation data showing that while regional productivity rose by 62 percent from 2000 to 2023, minimum wages only increased by 9 percent over the same period.
Wage adjustments not enough
Recent wage adjustments, such as the P29 daily wage hike for private sector workers in the Davao Region and the increases approved last year in Calabarzon and Central Visayas, have not quelled calls for a legislated national minimum wage.
In Davao, private sector workers’ daily wages rose to P510, while domestic workers now earn P6,000 monthly in chartered cities and P5,000 in other municipalities. In Central Visayas, depending on the city classification, daily minimum wages now range from P453 to P501.
However, labor groups maintain these increases are insufficient and continue to push for a nationwide P1,200 living wage to meet basic family needs.
Legislative action in congress
On the legislative front, Speaker Martin Romualdez announced that the House of Representatives would work toward passing a P200 daily minimum wage hike, a move labor groups view as a step in the right direction but still short of their larger demands.
Labor leaders have urged Congress to expedite the passage of legislated wage increases, with some lawmakers pushing for even higher across-the-board hikes to address workers’ longstanding calls for a national minimum wage that matches the rising cost of living.