The Department of Labor and Employment (DOLE) has suggested a P24 billion wage subsidy that would benefit at least 1 million workers for three months.
The proposal, presented to President Rodrigo Duterte, was aimed at providing workers some relief from the rising costs of fuel and basic commodities.
Labor Assistant Secretary Dominique Tutay said this subsidy will run for three months, starting April until June 2022.
Tutay said the agency recognizes the clamor for minimum wage increase due to the rising fuel prices but it also supports the government’s continued economic recovery efforts.
“With the current wages, Mr. President, now it is extremely inadequate, particularly for the minimum wage earners and the government’s economic recovery in full swing, subsidies may still be extended to vulnerable workers, particularly those most severely affected by fuel prices and its domino effect on prices in food and basic goods and services just like those in the transport sector,” she said.
Tutay said they submitted in February 2021 a proposal for a wage subsidy to workers in the private sector affected by the coronavirus pandemic.
These proposals are in lieu of calls to increase minimum wage amid the rising costs of petroleum products.
“The proposal has been supported and endorsed by the economic managers, of course, subject to the availability of funds. And at this time, and given the indirect impact of the global tension to the Philippine economy, Mr. President, we see that the wage subsidy is important for the Filipino workers,” Tutay added.
Socioeconomic Planning Secretary Karl Kendrick Chua said the unconditional cash transfers would be preferable to raising the minimum wage or increasing the fare on public transportation, which he said would trigger higher inflation.
