House of Representatives Approves P125 Daily Wage Hike

Strategic Insights -

The House of Representatives has approved on second reading a proposal to grant a P125 (US$2.36) across-the-board daily wage hike for workers. The proposal, which was unanimously approved by House members, will be implemented in a staggered basis of three installments until October 1, 2008. The wage hike will be P45 on October 1, 2006, P40 on October 1, 2007, and P40 on October 1, 2008.

Key Takeaways:

  • The proposal grants a P125 (US$2.36) daily wage hike for workers, to be implemented in a staggered basis of three installments until October 1, 2008.
  • The wage hike will be P45 on October 1, 2006, P40 on October 1, 2007, and P40 on October 1, 2008.
  • The proposal was unanimously approved by House members, with Representative Roseller Barinaga (NPC, Zamboanga del Norte) citing it as the best compromise bill to resolve the wage issue.
  • Labor leader Barinaga said the House could have adopted a one-time wage increase of P60 to P70, but lawmakers expressed worry this could adversely impact on employers.
  • President Gloria Macapagal Arroyo is unlikely to veto the bill due to its lighter scheme, with Barinaga citing her previous preference for a legislated wage increase.
  • The Senate's labor committee has approved a P100 across-the-board wage increase, indicating senators' willingness to address workers' demands for better pay.

Statistics:

  • P125 (US$2.36) daily wage hike for workers.
  • Three installments of P45, P40, and P40 until October 1, 2008.
  • P100 across-the-board wage increase approved by the Senate's labor committee.
  • 13th Congress, which has been debating the wage hike issue for years.
  • 10th, 11th, and 12th Congress, which also considered the wage hike proposal.

Sources:

  • (PNA) 01-06 2000
  • Representative Roseller Barinaga (NPC, Zamboanga del Norte)