MANILA – The House committee on labor and employment is considering the provision of government subsidies for individuals earning minimum wage, aiming to counteract the effects of inflation on their standard of living.
Representative Fidel Nograles, the chairman of the panel from the fourth district of Rizal, is cautious about the affordability of such subsidies for the government, especially with pending bills in Congress proposing wage increases ranging from P150 to P750.
“A number of sectors have raised the possibility of the government subsidizing the proposed wage increase during the hearing. I think this is a sound idea, but we also have to ask our economic managers whether the government can also cover the cost of such subsidies,” Nograles said.
“Can the government afford wage subsidies?” he asked after various sectors threw their support behind the provision of wage subsidies so that companies could fund a minimum wage increase, in light of the Senate-approved P100 legislated wage hike.
The proposal to raise minimum wages has sparked differing opinions. Workers’ groups argue that the wage hike could assist them in managing the high cost of living, while employers contend that they would face difficulties and caution against potential layoffs and business closures.
Nograles mentioned that he plans to instruct his committee to seek input from the government regarding a potential wage subsidy. He stated, “In addition to the wage subsidy, we will also explore other measures to achieve a mutually beneficial outcome for all parties involved.”
Last week, Majority Leader Manuel Jose Dalipe stated that the House, led by Speaker Martin Romualdez, is examining proposals for a legislated wage increase ranging from P150 to P350 per day.
Dalipe emphasized that the House acknowledges the challenging situation of Filipino workers, who are grappling with the negative impacts of inflation and reduced purchasing power due to global economic crises and conflicts.
“Our workers are enduring tough times, and as their representatives, it is imperative that we find substantial solutions to alleviate their financial burdens,” the Zamboanga City congressman pointed out.
Dalipe mentioned that the Speaker has assigned the House leadership the responsibility of identifying effective strategies to improve workers’ take-home pay, which may include implementing a legislated wage increase or revising the mechanism of the regional wage boards.
