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Substantial wage hike possible in NCR

October 26, 2018

by IBON Media

“NCR firms have more than enough profits to support a Php238 minimum wage hike. The latest data from the Philippine Statistics Authority’s (PSA) Annual Survey of Philippine Business and Industry (ASPBI) reports that NCR firms (with 20 and over employees) had combined profits of Php903 billion in 2015 while giving an average daily basic pay (ADBP) of Php530. Using ADBP as a proxy for workers’ wages, raising the NCR minimum wage to Php750 and ensuring that workers get this will cost just Php132 billion which is just 14.6% of their profits.

In effect, NCR firms can pay the Php750 minimum wage and not have to pass this on to consumers as higher prices if they accept a slight cut in their profits. Large corporations can readily give this substantial wage hike, said the group, but government should ensure assistance to micro, small and medium enterprises (MSMEs) so that they can afford this. This can come in the form of tax breaks and incentives, cheap credit, subsidized fuel and utilities, and technology and marketing support, among others.” — From https://www.ibon.org/2018/10/ibon-php238-ncr-wage-hike-doable-without-worsening-inflation/