Statistical Report of The Employees Daily wage in

A private company

I. BACKGROUND OF THE STUDY

All workers believe that the most dominant aspect to their job is the wage it pays.
Wages enable employees to earn a living from their labor. They want to aim for a wage
that is sufficient to fulfill basic needs while also providing some discretionary income. As
time goes by, the number of daily expenses increases each day. Are the workers' daily
wages enough to provide their daily needs even though the prices of necessities
increase left and right? Due to economic inflation, the daily wage may not be sufficient
to meet their needs. In conducting this research report, we aim to know whether the
daily wage given to the employees is enough to fulfill their basic needs despite the rise
of inflation. Is it enough to support a family, or is it simply enough to support yourself?
This research will determine whether the daily wage of the employees will be sufficient
or scarce.

II. LITERATURE REVIEW

A. Wage influences job performance

Wage and the quality of one's working life both have a substantial impact on an
employees' performance. A worker's salary can significantly motivate them, leading to a
greater performance (Gunawan and Amalia, 2015). They discovered that the quality of
one's working life is far more effective than pay in terms of improving one's
performance. As a result, if the work environment is unpleasant and the pay is low,
employees may feel unmotivated to improve job performance because the pay is
insufficient to meet their fundamental necessities.

B. Private labor standards

According to Schuster and Maertens in 2016, workers employed in organizations

that adhere to private labor standards are more likely to be paid a minimum wage, have
a contract, and receive training; nevertheless, private labor standards have no effect on
pay level or length of employment. Even if you have permanent employment in a private
company, the minimum pay remains unchanged, and there may not be enough workers
to meet their needs. As a result, they believe that the minimum wage cannot be
changed, even if you work in a private company and are well-trained and experienced.
 METHODOLOGY

In our research, we explored the topic of the daily wages of 50 workers in a

private company. We used qualitative data to express our data and that data was
collected by one person to gather observations without intervening.

Figure 1.0 Daily wages of 50 workers in a private company.

DAILY WAGES FREQUENCY LOWER <CUMULATIVE

(PHP) BOUNDARY FREQUENCY

426-450 6 425.5 50

401-425 13 400.5 44

Q3
CLASS 376-400 14 375.5 31

351-375 5 350.5 17

326-350 2 325.5 12

301-325 10 300.5 10

N=50

Q2 CLASS

Q1 CLASS
 This research applies quartiles to determine the measures of positions. A quartile
divides data into three points: lower quartile, median, and upper quartile, resulting in
four dataset groups. We used this to calculate the interquartile range, which is a
measure of variability around the median. The interquartile range is simply calculated as
the difference between the first and third quartile: Q3–Q1. In effect, it is the range of the
middle half of the data that shows how spread out the data is.

Firstly, we prepared a cumulative frequency table for the daily wages of 50

workers. Then, before computing for Q1 and Q3, determine Q1, Q2, and Q3 first, where
Q1 is the class interval containing the (N/4)th score, Q2 contains the (2N/4)th score,
and Q3 is the class interval containing the (3N/4)th score. In Q1, you can see that we
substituted 50 for N in N/4, then multiplied and divided N by 4 to get 12.5, and then we
looked for the given where XLB is 350.5, cfb is 12, fq1 is 5, and i is 25. In order to
calculate Q1, we utilized the formula for Q1 in the Q1 and Q3 grouped data, then
substituted all of the variables from the given, solved the equation, and we got Q1=353.
As for the Median class or the Q2 class, it’s the same process but Q2 contains (2N/4)th
score, then we substitute N by 50 to make it 2(50). Multiply then divide it by 4 to get 25,
after that we then need to look for the given and use the same formula as we used
before in solving Q1 but change N to 2N since we are solving for Q2, then we substitute
the variables from the given and solve the equation, and we got Q2=389.79. Lastly, we
then used (3N/4)th score for Q3, substitute N by 50 to make it 3(50), multiply then
divide it to get 37.5, then we have to look for the given again and use the formula for
Q3, then substitute all the variables with the given and solve the equation to get
Q3=413.
 N 50
Q1 CLASS : = = 12.5
4 4
Class Interval: 351-375
x LB = 350.5
c f b =12
f q1= 5
i =25

[ ]
N
−c f b
Q 1= x LB + 4 i
f q1

=350.5 + [ 5 ]
12.5−12
25

=350.5 +
5[ ]
0.5
25
=353

Q2=MEDIAN
2 N 2(50)
Median Class orQ2 Class: = = 25
4 4
Class interval: 376-400
x LB =375.5
c f b = 17
f q2= 14
i = 25

[ ]
2N
−c f b
Q2= x LB + 4 i
f q2

=375.5 + [ ]
25−17
14
25

=375.5 +
8
14[ ]
25
=389.79

3 N 3(50)
Q 3 CLASS: = = 37.5
4 4
Class interval: 401-425
x LB = 400.5
c f b = 31
f q3= 13
i =25

[ ]
3N
−c f b
Q 3= x LB + 4 i
f q3

=400.5 + [
37.5−31
13 ]25

=400.5 +
6.5
13 [ ]
25
=413

We have found that:

- Q1 is 25% less than Q2.

- Q2 is 50% and is 25% more than Q1 and 25% less than Q3.
- Q3 is the largest and is 25% more than Q2 and 50% larger than Q1.

IV. BODY

Wages, as previously said, provides us with the opportunity to meet our basic
needs. However, even if we get paid, it may not be enough to support our families. As of
2022, The daily minimum wage in the Philippines is ₱537, however this only covers the
NCR, other regions receive less daily minimum wage. If we compare it to the table
above, then it would mean that all of the workers are underpaid. The highest wage in
the table is ₱426 to ₱450, and only 6 workers receive that much wage. Even though
they receive the highest salary, DOLE wage order no. 22 would consider the workers
underpaid. If this was in the CARAGA region, then the workers have enough for the
minimum wage (₱320 for non-agricultural). Q2 contains 14 workers which means they
received 25 percent more than the 5 workers in Q1. The 13 Workers in Q3 received 25
percent more than the 14 workers in Q2 and 50 percent more than the 5 workers in Q1.

Figure 2.0 Current normal minimum wage of March 2022 (Department of Labor and
employment, 2022)

Agriculture
REGION Non-Agriculture
Plantation Non-Plantation

NCR 537.00 500.00 500.00

 CAR 350.00 350.00 350.00

I 340.00 295.00 282.00

II 370.00 345.00 345.00

III 420.00 390.00 374.00

IV-A 400.00 372.00 372.00

IV-B 320.00 320.00 320.00

V 310.00 310.00 310.00

VI 395.00 315.00 315.00

VII 404.00 394.00 394.00

VIII 325.00 295.00 295.00

IX 316.00 303.00 303.00

X 365.00 353.00 353.00

XI 396.00 391.00 391.00

XII 336.00 315.00 315.00

CARAGA 320.00 320.00 320.00

BARMM 325.00 300.00 300.00

If the workers are working 40 hours a week, their monthly salary should equal to
or surpass ₱6,020. ₱6,020 would be the lowest monthly income from the 50 workers
and 10 of them are bound to receive this much pay. The highest monthly income would
be ₱9,000 if workers were to receive ₱450 per work day. ₱6,020 is too little compared
to ₱9,000 which is also a small amount. Their average wage is ₱7,270 without a bonus.
According to the Philippine statistics authority, inflation rose from 3.0% in February to
4.0% in March 2022.

List of increases in the following commodity groups (Philippine Statistics Authority,

2022):

a. food and non-alcoholic beverages, 2.6 percent;

b. housing, water, electricity, gas, and other fuels, 6.2 percent;
c. Transportation, 10.3 percent;
 d. alcoholic beverages and tobacco, 4.8 percent;
e. Furnishings, household equipment and routine household maintenance, 2.6
percent;
f. Information and communication, 0.7 percent;
g. Restaurants and accommodation services, 3.0 percent; and
h. Health, 2.5 percent.

Taking these increases into consideration, would their monthly salaries be

enough to meet their individual and family needs? Assuming that they live with their
parents and they are the ones paying for the property tax, household bills, and the
worker has no children to feed nor own any kind of vehicle, then the worker can buy
basic human necessities for themselves despite the fact that they don't make a lot of
money (their average salary being ₱7,270). Their salary is strictly enough which is why
they must adhere to rigorous budgeting and avoid squandering money on irrelevant
items in their daily expenses, especially in a time where prices are increased because
of inflation. If they spend their money on irrelevant items, they might resort to taking out
loans and eventually go into debt if they aren’t able to pay it back. For example, gas
prices have increased all over the Philippines with the price going up to ₱70 or more per
liter (global petrol prices, April 2022), drivers that offer transportation services will
charge a higher price to make up for the inflation. If the workers' average fare is ₱20
going to work, it will now become ₱22.06. It might seem like a small amount, however
since prices of food, water, electricity, gas, and services increased simultaneously, it
would then become expensive and it would greatly affect the workers whose wages are
already small.

Philippine Statistics Authority states that in the first semester of 2018, a family of
five needed no less than ₱7,337, on average, to meet the family’s basic food needs for
a month. This means that the living conditions of the family are poor and may resort to
eating canned foods daily for every meal without vegetables, and aren’t able to eat a
proper and healthy meal. ₱7,337 is only for food not yet including non-food necessities
like clothes and allowance for children going to school. PSA stated that ₱10,481, on
average, was needed to sustain both food and non-food necessities to a family of five in
a month. So, if the workers know how to budget well for the family and themselves, then
the family and the worker will be able to obtain their daily needs, however the living
conditions might be unideal.

V. CONCLUSION

As the data shows, 66% more or less of these private Filipino workers can afford
their necessities, those whose daily wage are ₱376 to ₱450 and some of the workers
whose wages are ₱351 to ₱375 if they are able to reach ₱375 as their daily income.
Generally, the employees that receive wages of ₱6,020 up to ₱9000 which is under the
poor living conditions for it will not be enough to sustain the needs of a family but could
be enough only for the worker themself considering the present economic inflation of
basic necessities like food and non-alcoholic beverages, housing, water, electricity, gas
and other fuels, health, information and communication, and transportation, which
makes it more difficult to meet one's basic needs. This could be a hindrance to an
individual's performance to improve even if they are a well trained and experienced
worker. Salary increase for them is very much fair and needed. This wage level is
challenging in terms of supporting the working employee.

VI. RECOMMENDATIONS

Based on the research report and its findings, we believe that there are still ideas
to be further discussed and incorporated such as (1) The need to increase the daily
wages of the private company workers in order to further support themselves and
possibly their families for their basic needs. Increasing the daily wage might as well
bring them out of poverty and increase their standards of living. (2) Solving the problem
of inflation by using contractionary monetary policy to combat inflation by limiting the
money supply in an economy; by raising interest rates and lowering bond prices.
Contractionary monetary policy helps to curb spending because when money is scarce,
those who have it prefer to keep it and save it rather than spend it. It also means that
there is less financing available, which might lead to spending cuts. During times of
inflation, restriction from spending is vital since it helps to slow down economic growth,
and as a result, the pace of inflation. (3) Have a positive environment inside the
company to boost motivation and increase the performance of employees, giving them
the chance to be qualified for a promotion thus achieving a higher salary.

References:

https://psa.gov.ph/statistics/survey/price/summary-inflation-report-consumer-price-
index-2018100-march-2022

https://nwpc.dole.gov.ph/stats/current-nominal-minimum-wage-rates/

https://www.econstor.eu/bitstream/10419/173575/1/pidsdps1654.pdf

https://psa.gov.ph/poverty-press-releases/nid/138411

https://www.sciencedirect.com/science/article/abs/pii/S0959652615014225?
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282233388_Wages_and_Employees_Performance_The_Quality_of_Work_Life_as_Mo
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