Let’s not do any sugarcoating here. Despite the stellar reports of economic growth that President Ferdinand “Bongbong” Marcos, Jr. is set to highlight at his State of the Nation Address (SONA) this week, the reality is that inflation still bites at our pockets where it hurts.
While the current statistics have shown that the country’s inflation rates have “eased” at 5.4 percent last June, this is still way above the government’s target of 2 to 4 percent – and the potential effects of the El Niño phenomenon on the food supply is another cause of concern.
This month, minimum-wage earners in Metro Manila received a P40 increase in their wages, while in Calabarzon, the Regional Tripartite Wages and Productivity Board (RTWPB) IV-A has already set a series of hearings on whether the minimum wage for the region should also be raised.
Some sectors have called for a “uniform” minimum wage in the Philippines, saying that the current setup of deciding minimum wages by region has led to an unequal distribution of wages that forced many from rural areas to seek employment in Metro Manila and other urban areas.
Businesses, however, have balked at the proposal saying that this could force some businesses, particularly micro, small and medium enterprises (MSMEs) in the provinces, to shut down their businesses.
True, any increase in the minimum wage carries the risk of higher inflation rates, as well as the closure of some businesses who can’t afford to give higher wages to their employees.
But let’s set aside for a moment the potential short-term impacts of a possible uniform minimum wage to small businesses and look at the long-term benefits.
Aside from increasing the amount of money the average Filipino can spend, which will indirectly lead to the growth of small businesses in the long run, a uniform minimum wage could also solve the issue of migration from rural areas that has also been blamed for the stagnant economic growth in some regions.
As our economy is poised for a complete recovery from the Covid-19 pandemic, maybe it’s time now to consider an “across-the-board” minimum wage for our workers who have sacrificed so much during the pandemic.
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