DOLE seeks wage subsidy to cushion impact of oil price surge

MANILA – The Department of Labor and Employment (DOLE) has proposed the grant of a three-month wage subsidy for private-sector workers, particularly for minimum wage earners, amid soaring oil prices.

Speaking to President Rodrigo Duterte during his Talk to the People aired Wednesday, Labor Assistant Secretary Dominique Tutay said the subsidy with a proposed PHP24 billion funding will cover around one million workers from April to June.

“With the current wages, Mr. President, now it is extremely inadequate, particularly for the minimum wage earners and the government’s economic recovery in full swing, subsidies may still be extended to vulnerable workers, particularly those most severely affected by fuel prices and its domino effect on prices in food and basic goods and services kagaya na nga po nung sa (just like those in the) transport sector,” she said.

Tutay said they have submitted in February 2021 a proposal for a wage subsidy to workers in the private sector affected by the coronavirus pandemic.

She said the proposal is hinged on saving and preserving existing employment.

“The proposal has been supported and endorsed by the economic managers, of course, subject to the availability of funds. And at this time, and given the indirect impact of the global tension to the Philippine economy, Mr. President, we see that the wage subsidy is important for the Filipino workers,” Tutay added.

Tutay said there are currently eight petitions for wage increase in some regions, aside from the over PHP400 across-the-board salary hike petition filed by the Trade Union Congress of the Philippines.

“Any adjustment in the minimum wage at this time shall focus on the recovery of erosion or lost purchasing power of workers, and closing of minimum wage and poverty threshold gaps,” Tutay said.