Labor sector okays non-wage benefits

Labor groups welcome the recent announcement by the Department of Labor and Employment that it would give non-wage benefits to workers in lieu of their demand for wage increase.

However, workers said they would still continue with their efforts to push for the legislated wage hike because the minimum salary is still below the living wage.

"We welcome the benefits because those are actually among our demands aside from the living wage. That is if it is (benefits) true. We will see what are the limitations of that," said Jose Tomongha, chairman of the Alliance of Progressive Labor.

But Tomongha added that they are not just asking for tax exemption for workers who are receiving below minimum wage, but also for those who are earning below P100,000 a year.

Likewise, the labor leader claimed that Akbayan representatives are still pushing for the living wage in Congress. If approved, the minimum wage in Central Visayas would be raised to P460, the ideal living wage for a family of six here.

"The workers are entitled to living wage and non-wage benefits. We challenge the DOLE to study the wage rationalization law, which actually says that two rounds of increase are allowed in one year, especially if the purchasing power of the workers have significantly dropped," Tomongha explained.

For his part, Nicasio Igot of Alyansa sa Mamumuo sa Sugbo-Kilusang Mayo Uno, said that the tax exemptions and the other benefits that the government plans to give to workers are actually not enough to compensate for what they have lost due to the high cost of basic goods as result of the implementation of Expanded Value-added Tax.

"It's good if they would give it but there is still need for an increase in the basic wage because the workers are struggling to be able to provide three meals a day for their families," Igot said.

Labor Secretary Patricia Sto. Tomas announced that the DOLE and the Department of Finance are pushing efforts to ensure non-wage benefits for minimum wage earners.

She said such benefits are necessary even as the Regional Tripartite Wages and Productivity Boards has already granted adjustments in the minimum wage in July following the spate of oil price increases.

Sto. Tomas said that the regional wage boards did not also receive any formal petition for wage hike.

In lieu of a wage hike, she added that the government considers giving workers non-wage benefits that would include the possible income tax exemption of minimum wage earners.

According to her, the DOLE and the DOF are also pushing to facilitate access to loans from Government Financing Institutions, particularly the Land Bank of the Philippines, and Development Bank of the Philippines, for companies to purchase buses for free transportation of their workers. - Wenna A. Berondo