Minimum wage still below poverty threshold

CEBU, Philippines — Even with the latest wage increase in Central Visayas ranging from P33 to P43 a day, the region’s minimum wage still falls below the poverty threshold, says a non-government organization.

Visayas Human Development Agency, Inc. (VIHDA, Inc.) said that the poverty threshold in the region during the first semester of 2023 was set as P14,965 per month for a family of five. The amount is slightly higher than the P13,593 in 2021.

For Class A areas like Cebu City, Mandaue City, and Lapu-Lapu City, the 2023 poverty threshold is at P15,457. This means that for a family of five having a combined monthly income of P15,457 and below is considered poor.

The new wage order, which is expected to take effect next month, will increase the daily wage of workers to P501 or P15,030 a month. The amount is still below the poverty threshold and would even drop to as low as P13,026 after all the mandatory deductions.

Wages in class B and C areas are even lower at P13,890 and P13,590 for 30 days or P12,038 and P 11,778 for 26 days, respectively, which they said also fall below the poverty line for minimum wage earners.

"Despite Cebu's economy as the fastest-growing among the 17 regions in the Philippines in 2023, with a gross regional domestic product (GRDP) of P1.38 trillion and being the fourth-largest economic contributor in the country and the largest in the Visayas and Mindanao, workers remain poor,” VIHDA’s statement reads.

Based on VIHDA’s data, there are 1.2 million minimum wage earners in the island minus their dependents, yet wage adjustments remain insufficient to meet basic living standards.

“Instead of formulating excuses and succumbing to threats by large transnational companies, it must assert its mandate of providing a decent living to its constituents, especially in these times of economic stagnation, worsening inflation, and massive layoffs and unemployment,” VIHDA ended.