MANILA — The Department of Labor and Employment (DOLE) admits it is seeing real wage "erosion" in the Philippines amid the elevated inflation.
“'Yung nakaraang pulong namin, ipinakita ang erosion ng purchasing power, based doon sa existing minimum per region… Hindi ko masasabing maliit, kasi any erosion is an erosion, di ba? Pero hindi ‘yung kagaya ng sinasabing erosion ng ating mga kaibigang manggagawa. Hindi po ganoong kalaki," said Labor Secretary Bienvenido Laguesma.
"Naniniwala ako na babalansehin nila ‘yung pangangailangan sa kapasidad ng mga employer, lalu na ‘yung maliliiit na kumpanya na nagsisimula pa lang bumangon," he added.
A new International Labour Organization (ILO) report estimated that the global monthly wages fell in real terms to negative 0.9 percent in the first half of 2022.
The ILO said the crisis is reducing the purchasing power of the middle classes and hitting low-income households particularly hard.
Laguesma said the decline in real wages is being studied carefully by regional tripartite wages and productivity boards.
It is among the factors considered in deciding on wage hike petitions, along with the possible impact on inflation, according to the Labor chief.