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Wage boards favored by some solons to hike workers’ pay

By TJ Burgonio
Philippine Daily Inquirer
First Posted 19:41:00 04/16/2008

Filed Under: Wages & Pensions, rice problem

MANILA, Philippines -- Some lawmakers prefer that the regional tripartite wage boards raise the minimum wage of workers rather than Congress legislate a wage increase.

Valenzuela Representative Magtanggol Gunigundo, chair of the House labor committee, said Wednesday it would be easier to adjust the wage increase set by the wage boards than a legislated wage increase.

?Although we have a pending bill on legislated wage increase in Congress, I believe that it's better to let the present mechanism work,? he said at the Ayes and Nays press forum in Quezon City.

?That's easier to change unlike when we legislate a wage increase in Congress,? he added.

President Gloria Macapagal-Arroyo has ordered the wage boards to convene and set the amount of increase in minimum wages of workers in the private sector to help them cope with the rising costs of food and other basic commodities.

A bill providing for a P125 across-the-board wage increase has been pending in Congress.

Parañaque City Representative Roilo Golez agreed with Gunigundo that a legislated wage hike ?may become a little inflexible later.?

?We can do two things. Let the wage boards do their function because they can work faster. On the other hand, we can also continue working and then look at a legislated wage hike, with an automatic escalation clause. There can be a formula for this, which is tied to the consumer price index,? he said in the same forum.

Gunigundo also pointed out that any wage increase should be matched by tax breaks because if the wage increase is approved, the worker will also move up in the tax bracket.

A bill providing for tax breaks amounting to P150,000 for heads of families with four dependents is pending before the House committee on ways and means.

?If this is approved, the workers will enjoy the wage increase, and at the same time, they will be paying less, practically zero, for the taxes,? Gunigundo said.



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