The minimum wage in the Philippines is staggeringly low.  The minimum wage rate in the central region of Luzon will increasing by a mere P24 a day.  The Regional Tripartite Wages and Productivity Board announced the new rate.  The increase will take effect on Nov. 22.

That’s less than a $1.00 per day Increase in the minimum wage.

The unions are complaining and pointing out that isn’t enough to buy one kilo of government subsidized rice!  A shipyard union had asked for P100 a day.  Another group asked for an increase of P75 per day.

Wages are very low in the Philippines.  Work is hard to come buy and when it is found the pay is

living in the philippines

Regions of The Philippines

usually at levels that shock Westerners.  Central Luzon has seven provinces.   Six of those provinces have set the per day minimum wage at the  following amounts:

  • P316 for workers in nonagricultural firms with P30 million or more in assets.
  • P308.50 in companies with less than P30 million in assets.
  • P286 for plantation workers.
  • P270 for nonplantation workers.
  • P307 for workers in hospitals with 20-bed capacity or more.
    • P292 with less than 20-bed capacity.
    • P305 in the retail/service sector with 16 or more workers.
  • P291 in firms with less than 16 workers and P270 for handicraft workers.

This is for a 12 hour work day.

Pretty complicated breakdown there.  Not really surprising.  One province in the region has a different minimum wage but I was unable to obtain that information.

One problem is that in the export industry, raising wages raises the price.  The US dollar is already doing poorly.  That lowers exports from the Philippines to the USA.  Raising wages will increase cost and may put companies out of business.

Also inflation has been low for the last year, thus a cost of living increase would be expected to be low.  I don’t think I’ll get one at all, again this year as the USA inflation rate is very slow.

With pay for Filipino already so low, many really need to higher increases if they are to have any hope to break free from poverty.   It is amazing that so many Filipino have such huge smiles on their face.  Like I often say, wealth can be found even where there is deep poverty.

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Filed under: Cost of living in the PhilippinesLiving In The Philippines

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