SEN. Loren Legarda has filed Senate Bill 1856, proposing a daily minimum wage increase of P200 for private sector workers.
The proposed measure comes nearly 40 years after the last nationwide minimum wage hike.
The bill’s explanatory note cited Philippine Statistics Authority (PSA) data indicating the poverty threshold for a family of five stands at approximately P13,873 per month, translating to P462.43 per day. It noted that current minimum wage rates in various regions fall short of this threshold; only 52.94 percent of regions offer nonagricultural wages that surpass basic living costs.
Legarda’s bill emphasizes the definition of a “living wage” as outlined by the International Labor Organization (ILO), suggesting it should cover not only fundamental needs like food and shelter but also provide access to education, health care, and social participation.
According to a recent study by the IBON Foundation, the disparity between the daily nominal minimum wage and the actual family living wage is particularly pronounced, with gaps reaching as high as 79.85 percent in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM).
The senator argues that the current situation places millions of Filipino workers in a precarious position, unable to recover from the erosion of purchasing power due to inflation and stagnant wages. She points out that the last legislative wage increase was enacted through RA 6727, the Wage Rationalization Act of 1989, which mandated a P25 increase — an amount that has been outpaced by inflation for decades.
“The denial of a just share in the fruits of their labor has left our workers struggling,” Legarda said. “This bill aims not only to provide immediate relief through a P200 daily wage increase but also to stimulate the economy by expanding consumers’ purchasing power across all sectors.”
Economists have echoed the senator’s sentiment, saying a wage increase could significantly boost consumer spending, benefiting not only formal workers but also the informal sector, which heavily relies on the spending of wage earners. Increased household income would potentially stimulate domestic demand, fueling economic activity and fostering inclusive growth.
The proposed measure is gathering momentum, with various labor groups and social advocates expressing support.
“With this bill, we reaffirm our commitment to ensuring that every worker is recognized for their contribution to our economy and can provide for their families,” Legarda said.