High inflation pulls down wage’s value

Workers blame the increasing inflation rate of the country for the low value of the real wage in Central Visayas.

The National Wages and Productivity Commission said that as of May 2008, the minimum daily wage of P250 in Central Visayas has only a value of P156.25 in real terms.

The low value is due to the soaring prices of basic commodities, the NPWC said.

The daily wage increase of P17 for the minimum wage earners in the region took effect only on June 16.

Both the officials of the Alliance of Progressive Labor and the Kilusang Mayo Uno said they have already expected the value of the real wage to drop because of the high inflation rate and the oil crisis.

“The real value of the wage in the region went down because it is inflationary… Nagkagamay ang quantity sa mapalit sa workers tungod sa kamahal sa palitunon,” said APL chairman Jose Tomongha.

The National Statistics Office said that the country’s inflation rate has jumped to 11.4 percent in June from 9.5 percent in May, which is the highest rate since 1994 when 11.5 percent inflation rate was recorded.

Likewise, the NWPC said that the living wage in Central Visayas for the family of six is P853, which is among the highest in the country after NCR with a living wage of P882.

The living wage is defined as the amount of family income needed to provide for the family’s food and non-food expenditures with sufficient allowance for savings/investments for social security so as to enable the family to live and maintain a decent standard of human existence beyond mere subsistence level, taking into account all of the family’s physiological, social and other needs.

“We expect the inflation rate to further go up, together with the prices of oil products,” Tomongha said. “And with this, we also expect the prices of basic commodities to go up because it would definitely create a chain reaction.”

He added that the present living wage of P853 in Central Visayas may still increase to as high as P1,000 by the end of the year.

In its recent report, the NWPC also said Region VII has also the lowest paid workers who are working in the agriculture sector (plantation) who are receiving P202 a day.

The National Capital Region has the highest nominal wage for both the non-agriculture and agriculture sectors with P382 and P345, respectively

“Nagkagamay ang purchasing power sa mga mamumuo. Kung ato tan-awon, unsa ra gud taw’n mapalit sa P156. Kulang kaayo para sa usa ka adlaw nga budget,” said Elpidio Caterbas, secretary general of the Alyansa sa Mamumuo sa Sugbo-KMU. —Wenna A. Berondo/LPM