Thursday, October 5, 2017

San makakarating ang P21 if the cost of living is P1,200?—labor group


With the implementation today of the P21 minimum wage hike for NCR workers, the militant Partido Manggagawa (PM) released its own study of the cost of living for a family of five in Metro Manila that reveals it has already reached P1,261 a day.

"San makakarating ang P21 na wage order kung ang daily cost of living ay P1,200? This estimate shows that the gap between the P512 minimum wage in the NCR and the present cost of living is a yawning P749 or 146% of the ordinary wage. Even if both parents work—which is the buy one, take one policy of the government—then their combined income will not be enough to feed the entire family," stated Renato Magtubo, PM chairperson.

The group’s cost of living estimate did not provide for savings and social security which in the government’s basket of goods and services constitutes 10% of the cost of living. Furthermore, PM's study did not include items such as leisure and recreation, and the family budget for health excluded medical expenses. Magtubo said that "If we include such items, and we must in a more accurate survey, then the cost of living will significantly exceed P1,200 per day."

The group asserts that the wage orders granted by the NCR wage board have not been enough to bridge the huge gap between the minimum wage and the cost of living. “Since the NCR wage board was established in 1989, no basic wage increase ever granted was above P30, whether the economy was in boom or bust. The wage boards must be abolished for being inutile. Its wage orders are always delayed, stingy and benefits merely a small section of workers because it is not across-the-board and riddled with exemptions, deferments and creditability clauses," declared Magtubo.

He added that “Whatever happened to the campaign promise of this administration that the regional wage boards wil be abolished and a national minimum wage instituted? Is it just another broken promise, like ending endo?”

The group is advocating for the establishment of a National Wage Commission. “The National Wage Commission is different in that its mandate is to fix wages based on the single criterion of cost of living. And despite the huge gap between the present minimum wage and the current cost of living, the National Wage Commission can achieve equalizing the two by a host of mechanisms among which are direct wage increases, tax exemptions, price discounts at social security subsidies for workers,” Magtubo explained.

Magtubo also argued that "Since we should not impose the burden of household chores and child rearing to the female parent, then the basket of goods should provide for a househelp. That is not anymore a luxury especially in the light of the insistence of the state that both parents must work instead of having just a single breadwinner. Even the Kasambahay Law implicitly recognizes that a househelp is a necessity even for working class households."

Cost of Living Estimate
for a family of 5 living in NCR (2017)


Items

Volume/Cost
Daily
Cost
Monthly
Cost
%
share
Food & Beverages


16,029.70
42.31
rice
2.5kg/day x P35 (sinandomeng)
87.50
2,625

ulam & gulay
3 servings (P78/pax/day x 5 pax)
390
11,700

condiments
2kg onion (P65),
1kg garlic (P109), others
7.97
239

fruits
4kg  x P40 (banana)
5.33
160

cooking oil
2 liters x P95.45
6.36
190.90

sugar
2kg x P50
3.33
100

soy sauce
1 liter P32.25
1.08
32.25

vinegar
1 liter P26.75
0.89
26.75

fish sauce
1 liter P30.75
1.03
30.75

coffee
2 (100g) x P75.90
5.06
151.80

milk
3 (900g) x P257.75
25.78
773.25

Utilities


3,400
8.97
electricity
200kwh (P11.17/kwh)
74.47
2,234

water
20cu.m. (P20.80/cu.m)
13.87
416

LPG
1 cylinder
25
750

House rental


6,000
15.84

1 month rent
200
6,000

Toiletries


1,224.10
3.23
soap
6 bars x P37.75
7.55
226.50

shampoo
2 (200ml ) x P99.80
6.65
199.60

sanitary napkins
3 (packs of 8) x P40.00
4
120

toothpaste
2 (150ml) x P67.50
4.5
135

laundry soap
24 (70g pack) x P9.50
7.60
228

deodorant
4 x P78.75
10.50
315

Education


5,170.83
13.65
enrollment fees
3 pax x P750 = P2250/schoolyear
6.16
187.50

school allowance
100 x 2 pax & 50 x 1 pax/day x 22 days x 10 months = P55,000/yr

150.68

4583.33

theatre tickets
1 ticket x P200/grading x 4 periods x 3 pax/schoolyear = P2,400
6.58
200


school projects
2 subjects x P100
/grading x 4 periods x 3 pax = P2,400/schoolyear

6.58

200

Health


165
0.44
ascorbic acid
5 (1 tablet ascorbic acid generic) X P1.10
5.50
165

Communications


1,500
3.96
phone or cellphone
at least P25/day load x 2
50
1,500

Transpo expenses


4,400
11.61
fare to and from work
2 pax x P100/day x 22days
146.67
4,400

Total

P1,260.64
P37,889.63


NOTES:

1.     Family is composed of a couple with 3 children. Children are all in public schools (2 HS level and 1 elementary), school supplies, work books expenses, internet use for research are not yet included
2.     Basket does not include bill for a house-help
3.     Utilities such as electricity and water vary from time to time depending on consumption so its ++
4.     No item for leisure/recreation
5.     Health budget does not include medical expenses
6.     No budget allotted for savings.  NWPC basket provides 10% of the total

October 5, 2017


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