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PACQUIAO EYEING A REVIEW TO COUNTRYS LABOR CODE

PROMDI standard-bearer Sen. Manny Pacquiao on Saturday vowed to push for a review of the Labor Code and Republic Act 6727 or the Wage Rationalization Act as he raised the need to even up the salary rate of all workers regardless of geographic location.

/ 27 February 2022

PROMDI standard-bearer Sen. Manny Pacquiao on Saturday vowed to push for a review of the Labor Code and Republic Act 6727 or the Wage Rationalization Act as he raised the need to even up the salary rate of all workers regardless of geographic location.

Pacquiao said the cost of fuel and other basic commodities in Metro Manila are the same or are even more expensive in other regions that it does not make sense that salaries should vary depending on ones’ place of work.

The boxing great added under his administration, he would push for an across-the-board salary standardization scheme to address the disparity in salaries between workers employed in urban centers like Metro Manila and those working in the countryside.

Pacquiao explained the imbalance in wage rates have contributed to the rapid decline of the quality of life and the productivity of many Filipinos living in Metro Manila due to traffic problem, extreme congestion in living spaces, and pollution.

Wages in the Philippines are set by tripartite regional wage boards with varying rates depending on the location of every region.

According to Pacquiao, the prevailing minimum rate, which ranges from P316 to P537 per day, must be reviewed to ensure the minimum take-home pay would be within the monthly minimum threshold for a family of five as determined by the National Economic Development Authority.

According to NEDA, an average Filipino family needs at least P42,000 monthly to live decently which means that a couple should earn at least P21,000/month each.

Pacquiao reiterated wages should be standard across the regions, which, in effect, meant possible amendments to the Labor Code as prescribed under Presidential Degree 442 and RA 6727 which provided for the creation of the Tripartite Regional Wage Boards.

Each region in the Philippines has a unique minimum wage set by the regional wage boards based on the cost of living and poverty threshold, among others. Due to his arrangement, Metro Manila has a higher minimum wage compared to the regions.