Minimum wage earners are poor according to PSA “fact reveal”

 

Photo from Rappler

The latest poverty statistics released by the Philippine Statistics Authority (PSA) last week show that families with a minimum wage earner as a breadwinner live below the poverty line. “PSA’s ‘fact reveal’ exposes the sad truth that minimum wage earners are working poor as their families survive below the poverty threshold which is unrealistically low. Thus, the urgency of a PhP 150 legislated across-the-board wage hike for all workers,” stated PM national chair and a Marikina city councilor.

 

“The minimum wage is highest in Metro Manila, where the wage board has already granted an adjustment last month. Yet the monthly income of a minimum wage earner in NCR is just PhP 14,190 (P645 x 22 working days). This falls below the PhP 15,713 poverty threshold in Metro Manila, according to the PSA,” Magtubo explained.

 

He added that the same working poor scenario exists for minimum wage earners in highly industrialized areas like Calabarzon, Central Luzon and Cebu. “The ‘minimum wage-poverty threshold gap’ is worse for workers in Calabarzon, Central Luzon and Cebu where no salary adjustment has been granted yet by the inutile wage boards. In Calabarzon the monthly minimum wage is PhP 11,440 but the poverty threshold is PhP 15,457. In Central Luzon the wage is PhP 11,000 but the threshold is PhP 16,046. Finally, in Cebu the monthly minimum wage is PhP 10,296 while the poverty threshold is PhP 14,397. The minimum wage-poverty threshold deficit ranges from PhP 4,000 to 5,000 in a month for these industrialized areas where minimum wages are higher than the rest of the country, except Metro Manila,” Magtubo elaborated.

 

He called for a legislated across-the-board wage hike of P150 to recover the lost purchasing power of workers nationwide. PM is calling on Congress to act on the demand for a salary increase.

 

Magtubo added that “It is a scandal that the minimum wage—which is a floor supposed to protect workers and their families—fails to rise above the poverty threshold. And this holds not just for Metro Manila but for all regions. We are a nation of working poor. Sa kabila ng sipag at tyaga ng mga manggagawa, nanatiling mahirap ang kanilang mga pamilya.”

 

“Further, we can question the accuracy of the poverty threshold estimates. Suffice it to say that even Sec. Balisacan found it difficult to defend the P64 food poverty threshold and stated that it needs revision. This admission from officials is good to hear but action from government is what the working poor need,” Magtubo averred.

August 19, 2024

“Gutom Na Pilipino” (GNP) persists despite economic growth

Photo from UCA News

“The phenomenon of Filipinos going hungry persists despite 30 years of economic growth. Sa mga komunidad, madami ang gutom na Pilipino o GNP. This is the GNP that we see is increasing,” according to Judy Miranda, secretary general of the group Partido Manggagawa (PM). This was PM ‘s reaction to the statement yesterday of Finance Undersecretary Domini Velasquez that poverty will be reduced to single digits by 2028.

 

Miranda asserted that “The government is able to brag about a low poverty incidence because it uses a depressed poverty threshold. Even Economic Planning Secretary Arsenio Balisacan finds it difficult to defend the low poverty line that he promises a review of the unrealistic basket of goods used.”

 

“We ask Undersecretary Velasquez, what are the planned government interventions so that poverty is reduced to below 10% by the end of President Bongbong Marcos, Jr.’s administration? If this forecast is merely based on continued economic growth, this prediction is misguided as it assumes that everyone benefits from a rise in gross national product. GNP increases just means more gutom na Pilipino. Trickle-down economics is a scam. Di na magpapabudol ang manggagawa sa trickle-down.” Miranda explained.

 

She added that “Workers have certainly not benefited from the robust economic growth or GNP increases. Data provided by former Finance Undersecretary Karl Chua already revealed that the economy doubled from 2001 to 2016 and labor productivity increased by half yet real wages remained flat. Meaning, the size of the economic pie expanded but the slice taken by workers stayed the same. The capital-labor share of incomes is skewed against the working class.”

 

PM avers that Filipinos will not feel the predicted poverty reduction unless that are asset redistribution programs, targeted income transfers, and expansion of public services. “We reiterate our demand for a P150 legislated across-the-board salary increase, maternity benefits for informal women equivalent to 44 days of minimum wage, and provision of public laundromats in poor communities. These are concrete examples of actions that can reduce poverty, especially for women,” Miranda concluded.

August 18, 2024

Minimum wage earner families are food poor—Partido Manggagawa

Photo from Panay News

The P64 food poverty threshold means that families with a minimum wage earner as breadwinner are food poor. This is the reaction of the labor group Partido Manggagawa (PM) to NEDA Secretary Arsenio Balisacan’s statement on the latest poverty threshold estimates. Tomorrow, the Philippine Statistics Authority (PSA) is set to hold a presscon to announce the results of the poverty survey for the full year of 2023.

 

“Basing on the publicly available PSA data, the first semester 2023 poverty threshold for Metro Manila is P18,704, of which P13,061 is the allocation for food. The minimum wage for Metro Manila, which was increased last month, is just P645 per day or P16,770 for one month. Thus, the income of a family of five with a minimum wage earner as breadwinner falls well below the poverty line and is food poor,” explained Rene Magtubo, PM national chair and a Marikina city councilor.

 

He called for a legislated across-the-board wage hike of P150 to recover the lost purchasing power of workers nationwide. PM is calling on Congress to act on the demand for a salary increase.

 

The P13,061 poverty food threshold for Metro Manila in the first semester of 2023 implies that a person needs more than P87 per day to be considered not poor. This is above the P64 mentioned by Sec. Balisacan which refers to the national average for the full year of 2023. Magtubo declared that “The P64 food poverty threshold is well above NCR’s food poverty threshold since the cost of living is higher in the capital. But despite the higher minimum wage in Metro Manila that is still not enough to sustain a family. Therefore, workers deserve a wage hike.”

 

He added that “It is a scandal that the minimum wage—which is a floor supposed to protect workers and their families—fails to rise above the poverty threshold. And this holds not just for Metro Manila but for all regions. We are a nation of working poor. Sa kabila ng sipag at tyaga ng mga manggagawa, nanatiling mahirap ang kanilang mga pamilya.”

 

“Further, we can question the accuracy of the poverty threshold estimates. Suffice it to say that even Sec. Balisacan found it difficult to defend the P64 food poverty threshold and stated that it needs revision. This admission from officials is good to hear but action from government is what the working poor need,” Magtubo averred.

August 14, 2024

Labor group to ECOP: You also need to feel how bad life is for ordinary workers

 

We can try to understand how employers feel about the pending wage hike proposals in Congress. But their permanent opposition to any proposal since time immemorial speaks volumes about their regard for the lives of ordinary workers in our country.

 

We see them constantly opposed to any wage hike proposal at the level of regional wage boards since 1989, and against the legislated wage proposals since 1999.

 

In other words, they will cry wolf against any wage proposal, but neglect to mention how workers suffered a life of poverty. They won’t tell us that GDP and labor productivity more than doubled during the last three decades, but real wages of workers remained flat.

 

In fact, even as they up the hype of apocalyptic death of local industry and el niño of foreign investors, the fact remains that minimum wages all over the country fall under the national poverty threshold of P13,797 per month for a family of five. The same is true when economic managers assure everyone that GDP will remain within the 6% trajectory. That won’t change the fact that after 35 years under the regional wage boards, guided by thousands of pages of Philippine Development Plans, more than 20% of our population remains poor, or close to half, according to the latest SWS survey on self-rated poverty.

 

The problem is that employers don’t feel this way as they always view wage hikes, union rights, and equitable distribution of wealth as anti-business. But we don’t require them to have a change of heart, in the same way workers won’t stop asking for fair share in the social wealth they have been creating for centuries. 

 

Why then is legislative action necessary for wage hikes? Simply put, the regionalization of wages under RA6727 was an epic failure. The highest wage rates, 35 years after, still fall short of meeting the poverty threshold. Moreover, regional wage policies have not succeeded in attracting investments to the country's poorer regions, despite being one of the law's intended objectives. There is also a low level of investment despite this low wage regime incentives.

 

We understand ECOP's emphasis on micro-enterprises as a central argument against wage hikes. However, framing the issue as a choice between inflation, unemployment, and small businesses overlooks the broader benefits of ensuring workers receive fair compensation. We maintain that our call for legislated wage hikes is not intended to harm small businesses; rather, we believe that the positive ripple effects of higher take-home pay extend further than keeping wages at starvation levels.

27 February 2024

PSA’s P10,481 poverty threshold means malnourished Filipinos

Photo by Philippine Daily Inquirer

The partylist group Partido Manggagawa (PM) lambasted the PSA for its poverty threshold of P10,481 for a family of five. “This threshold implies malnourished Filipinos and a miserable standard of living,” averred Rene Magtubo, PM national chair.

He added that “PSA’s threshold is similar to NEDA’s much maligned P10,000 monthly budget for a family of five announced last year. In contrast, our own cost of living survey found that a family of five in the National Capital Region needs P1,300 daily or P39,000 monthly to live decently as of May 2018.”

“PSA did not provide additional details for its poverty threshold. But its food budget of P7,337 and P3,144 non-food budget contrasts with NEDA’s estimate of P3,834 for food and P6,008 for non-food. Out of the P7,337 food budget of PSA, we guess that P2,000 is allotted for rice. Such a budget can only buy 60 kilos of P32 NFA rice—which is hard to find in the market—for one month or 2 kilos per day to be shared by 5 people. This translates to just two cups (400g) per person per day or around 500 calories, just a fraction of the recommended daily calorie intake of 1,500-2,000. This means malnourished and stunted workers and children,” explained Rene Magtubo, PM national chair.

In PM’s own study, P3,150 monthly are needed to buy daily 2.5 kilos of the cheapest commercial rice at P42. Of the P39,000 monthly budget, 44% is earmarked for food and 56% for non-food items. Utilities like electricity, water and cooking gas make up 8%, house rent 15%, transportation expenses 11% and education needs 13% of the total budget.

“Our cost of living study is in fact an underestimation as it does not provide for leisure and recreation, savings or social security which should comprise 10% as a standard or for a house help which is a necessity if the government insists that both parents must work to sustain the family,” Magtubo averred.

PM is calling for a substantial wage hike and national minimum wage as promised by President Rodrigo Duterte. The group is supporting pending bills calling for a national minimum wage of P750 to P800.

Magtubo insisted that “The focus now is on worsening inflation that has eroded workers nominal wages. But hardly noticed is growing inequality due to the stagnation of real wages while productivity is booming. From 2001 to 2016, labor productivity grew by at least 50 percent, yet the real wages did not grow at all. Workers have been denied their fair share in the fruits of production.” 

Cost of Living Estimate

for a family of 5 living in NCR (May 2018)

Items	Volume/Cost	Daily Cost	Monthly Cost	% share
Food & Beverages			17,446.50	44.33
rice	2.5kg/day x P42 (sinandomeng)	105	3,150
ulam & gulay	3 servings (P82/pax/day x 5 pax)	410	12,300
seasoning	2kg onion (P97/kilo), 1kg garlic (P110/kilo)	10.13	304
fruits	4kg  x P60 (banana)	8	240
cooking oil	2 liters x P106	7.07	212
sugar	2kg x P56.25	3.75	112.5
soy sauce	1 liter P42	1.40	42
vinegar	1 liter P34.50	1.15	34.50
fish sauce	1 liter P53	1.77	53
coffee	2 (100g) x P76.25	5.08	152.50
milk	3 (900g) x P282	28.20	846
Utilities			3,358	8.53
electricity	200kwh (P10.90/kwh)	72.67	2,180
water	20cu.m. (P23.95/cu.m)	15.97	479
LPG	1 cylinder	23.30	699
House rental			6,000	15.25
	1 month rent	200	6,000
Toiletries			1,027.05	2.61
soap	6 bars (135g) x P40.50	8.10	243
shampoo	2 (180ml ) x P101.90	6.79	203.80
sanitary napkins	3 (packs of 8) x P42.75	4.28	128.25
toothpaste	2 (150ml) x P77.50	5.17	155
laundry soap	24 (70g pack) x P5.50	4.40	132
deodorant	2 (40ml) x P82.50	5.50	165
Education			5,170.83	13.14
miscellaneous fees	3 pax x P750 = P2250/schoolyear	6.25	187.50
school allowance	100 x 2 pax & 50 x 1 pax/day x 22 days x 10 months = P55,000/yr	152.78	4583.33
theatre tickets	1 ticket x P200/grading x 4 periods x 3 pax/schoolyear = P2,400	6.67	200
school projects	2 subjects x P100 /grading x 4 periods x 3 pax = P2,400/schoolyear	6.67	200
Health			450	1.14
ascorbic acid	5 (1 tablet ascorbic acid generic) X P3	15	450
Communications			1,500	3.81
phone or cellphone	at least P25/day load x 2	50	1,500
Transpo expenses			4,400	11.18
fare to and from work	2 pax x P100/day x 22days	146.67	4,400
Total		P1,311.77	P39,352.38

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

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

April 11, 2019