EVERYBODY seemed to be talking about the Middle East crisis-induced inflation on food, oil, utilities and everything in between, but the Palace remains mum on the possibility of a wage increase.
For one, imposing a salary adjustment usually takes a year (at the very least) for the government to consider the idea of including it on its drawing board.
With the crisis hurting the informal working class, the government offered a modest solution — a one-time fuel subsidy for a few selected sectors.
Interestingly, the government doesn’t seem upbeat on addressing the concerns of the minimum wage workers, whose meager salaries are significantly decimated in view of the mandatory monthly contributions.
Employees in the private sector are bound to comply with laws embarking on the so-called mandatory contributions — Social Security System (SSS), Philippine Health Insurance Corporation (PhilHealth) and Pag-IBIG Fund.
SSS collects P800 per month from the minimum wage earners. PhilHealth takes P1,100 monthly, while Pag-IBIG Fund gets to slice P400 from an employee’s monthly wage.
In some instances, private employers are deducting 10 percent withholding tax.
Taking the case of Metro Manila, the Regional Tripartite Wage Boards is implementing a minimum wage ranging from P658 to P695 per day, which is equivalent to a monthly salary ranging from P 14,476 to P15,290.
With so much to deduct, what is left of their hard-earned money makes it doubly hard for them to “make both ends meet,” especially for a family of five who must pay monthly rent, plus other expenses like the utility bills (electricity and water supply), children’s education, transportation and food – that is on the assumption that nobody gets sick.
Under the 20th Congress, House legislators are frantic on impeaching Vice President Sara Duterte.
The good thing though is there’s one member of the Senate who has been persistently proposing measures to address the predicament of the lowly workers. His legislative bills however don’t seem “attractive” to the administration because he’s closely identified with the Vice President.
His name — Bong Go.
A few days ago, Senator Go filed a bill seeking urgent relief interventions to cushion Filipinos from the impact of surging fuel prices. His proposal embarks on a temporary deferment of the payment of mandatory monthly contributions to SSS, PhilHealth, GSIS, and the Home Development Mutual Fund (Pag-IBIG Fund).
The proposed “Fuel Crisis Immediate Relief and Response Act” outlines a set of economic safeguards designed to ease financial pressure on households and vulnerable sectors affected by global oil market disruptions.
In his explanatory note, Go cited escalating tensions in West Asia, particularly involving major oil-producing nations and key oil transit routes, as a primary driver of global fuel price instability. He noted that “conflicts in the region, especially involving Iran, Israel, and key oil transit routes such as the Strait of Hormuz, have led to interruptions in oil supply, causing unstable markets and driving global fuel prices upward.”
He further pointed out that “recent data indicates that global crude prices have surged past $115 per barrel,” emphasizing that as a net oil-importing country, the Philippines remains highly vulnerable to such external shocks.
According to the explanatory note, these developments have led to “increased transportation costs, higher prices of basic goods, and diminished purchasing power among Filipino households,” with low- and middle-income families among the most affected.
To address these challenges, the bill proposes several immediate relief measures for two months. He also sought a 30-day grace period for the payment of all existing and outstanding loans from GSIS, SSS, Pag-IBIG, and other government lending institutions, without incurring interest, penalties, or other charges.
His proposal makes sense. The government has nothing to lose since the bill provides that the deferred payments would be settled on a staggered basis over three monthly installments.
There’s just one glitch — the administration would not agree on something that would adversely affect their dubious money-making schemes.