The approved P85 increase in the minimum wage in the National Capital Region (NCR) has been met with skepticism by a local lawmaker, who claims it falls short in addressing the daily needs of workers and their families.
Party-list Rep. Sarah Jane Elago stated that while the wage increase has been a long time coming, it remains insufficient to meet the basic needs of workers and their loved ones, citing the continued increase in the price of goods.
The lawmaker pointed out that the P85 increase will be implemented in two parts, with P60 taking effect on July 19 and the remaining P25 in January 2027, further diluting its impact.
According to Elago, even with the minimum wage in the NCR reaching P780 after the increase, it still falls short of the estimated P1,251 family living wage for a family of five.
The additional wages earned by workers will likely be depleted quickly due to the 12% value-added tax (VAT) imposed on basic goods and services, further exacerbating the financial struggles of low-income households.
Elago urged the public to support the proposed P200 National Minimum Wage Bill, which aims to eliminate the 12% VAT on essential goods and services, including electricity, water, toll fees, and petroleum products, in an effort to provide relief to struggling families.
