P85 NCR wage hike still falls short

A LAWMAKER on Wednesday insisted that the approved P85 increase in the minimum wage in the National Capital Region (NCR) is not enough, as it will is offset by the 12% value-added tax (VAT) and the continued increase in the price of goods.

In a statement, Party-list Rep. Sarah Jane I. Elago said that although the wage increase has been long awaited, it remains insufficient to meet the daily needs of workers and their families.

Ms. Elago said that its impact is further mitigated because the increase will be implemented in two parts, P60 starting July 19 and the remaining P25 in January 2027.

She also said that even though the minimum wage in the NCR reached P780 after the increase, it is still far from the estimated P1,251 family living wage for a family of five.

The lawmaker also said that the additional wages will easily be depleted due to VAT and other taxes imposed on basic goods and services.

Ms. Elago also called on the public to support the proposed P200 National Minimum Wage Bill and the Lower Price Bill, which seeks to eliminate the 12% VAT on electricity, water, toll fees, petroleum products and other basic necessities, as well as the excise tax on petroleum products. — Pexcel John Bacon