Rappler
Northern Mindanao minimum wage hike still leaves workers below poverty line
A labor group has deemed the recent P39 daily minimum wage increase for private sector workers in northern Mindanao insufficient, arguing it does not keep pace with rising prices.
The Federation of Free Workers (FFW) welcomed the increase through Wage Order No. RX-24 but stated it does not keep pace with rising prices and the gap between wages and basic family needs.
The Department of Labor and Employment (DOLE) announced the wage hike will be implemented in two tranches: P25 effective January 16 and P14 on May 1, bringing the daily minimum wage in northern Mindanao to P485-P500.
FFW legal counsel Proculo Sarmen described the adjustment as a "consolation for the stupid," stating that wage orders have historically failed to provide a "living wage."
Business and labor leaders also said the increase is too small to lift workers above the poverty threshold, with the Cagayan de Oro Chamber of Commerce and Industry Foundation Incorporated (Oro Chamber) noting that the regional wage-setting mechanism has never issued a P50 or higher increase.
A potential P100 to P300 legislated wage hike was also considered a challenge that could lead to layoffs and business closures.
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