MINIMUM WAGE
WHAT IS IT? TYPES OF MINIMUM WAGE
It is the lowest legal amount that
National Minimum Wage
employers are obligated to pay their
employees for each hour of work. Established by the national government, this
wage applies uniformly to all workers
throughout the country.
Regional Minimum Wage
Varies depending on the cost of living in
specific areas, such as different provinces or
cities, to better reflect local economic
conditions.
The purpose of minimum wage is to protect
workers from exploitation, ensure a basic Sectoral Minimum Wage
income, reduce poverty, and promote fairness
by setting wage standards across all jobs and Sets distinct wage rates for various industries
industries. or job types, like agriculture, retail, or
manufacturing, based on the unique demands
of each sector.
WHY DOES IT EXIST?
Protects Workers: It prevents exploitation
by ensuring workers are paid fairly for their
time and effort.
Ensures a Basic Standard of Living: It
provides workers with enough income to
afford basic necessities like food, housing,
and transportation.
Reduces Poverty: By setting a floor for
wages, minimum wage policies aim to
reduce income inequality and poverty
levels, particularly for low-income workers.
IMPACT OF MINIMUM WAGE
Pros of Raising the Minimum Wage
Raising the minimum wage can improve the standard of living for
workers by aligning earnings with rising costs, potentially lifting millions
out of poverty and reducing reliance on government financial aid.
Higher wages also boost employee morale, leading to increased
productivity, retention, and reduced training costs. Additionally, longer
employee tenures can foster career advancement opportunities. On a
broader scale, increased consumer spending from higher wages
stimulates economic growth, benefiting businesses and the economy
overall.
Cons of Raising Minimum Wage:
Raising the minimum wage may lead to higher prices as businesses
offset increased labor costs, fueling inflation and reducing the benefits
of higher earnings. It could also result in significant job losses, with up
to 1.9 million jobs potentially eliminated by 2032, according to the CBO.
Furthermore, heightened competition for low-wage jobs might
disadvantage younger or inexperienced workers, limiting their career
growth opportunities.
WHAT IS THE MINIMUM WAGE IN 2024 IN THE PHILIPPINES?
The table below shows
the daily minimum wage
rates for the private
sector across different
regions in the Philippines
as of October 2024.
These rates represent
the legal minimum an
employer must pay
workers in each region.
https://newstogov.com/
minimum-wage-
philippines/
The impact of the minimum wage on the economy is a complicated topic with
HOW DOES strong arguments on both sides. Supporters believe that raising the minimum
wage can help workers earn more money, which they will spend on goods and
MINIMUM services, boosting the economy. It could also reduce poverty and make people less
dependent on government assistance.
WAGE AFFECT However, critics warn that higher wages might cause businesses to cut jobs or
THE replace workers with machines to save money. They also argue that businesses
might raise prices to cover higher labor costs, which could make things more
ECONOMY? expensive for everyone and cancel out the benefits of higher wages. This makes
the debate about the minimum wage a challenging issue with no easy answers.
