IBON

50-50 SPLIT BETWEEN

PROFITS AND
workers’ wages more than fair
BY IBON FOUNDATION
May 1, 2024
 WAGE HIKE TOWARDS
FAMILY Living wage
• Implies that there is a need to increase fair wages
for all families as a 50-50 split of profits between
employers and Filipino Workers.
• To ensure that nominal wages keep up with the
rising cost of living.
• IBON stressed that raising the minimum wage to
a living wage corrects decades of injustice where
workers create huge profits for employers but
receive meager wages.
WHAT IS THE IMPACT OF WAGE
HIKES ON ESTABLISHMENT SIZES
• Php690 across-the-board wage hike would raise the average
Php440 minimum wage nationwide to the current P1,207
average family living wage nationwide.
• This wage hike is equivalent to 49% of profits across all
establishment sizes and would divide profits or less equally
between employees and workers.
• Broken down, the wage hike is equivalent to 54% of profits
in micro, 53% in small, and 46% in medium and large
firms.
IBON said that the average minimum wage across all
regions is only Php440 or just a little over one-third (36%)
of the Php1,207 average family living wage (FLW)
nationwide for a family of five, as of March 2024. The
NCR has the largest minimum wage of all regions at
Php610, but this is barely half (51%) of the Php1,197 FLW.
The gap is even worse in BARMM – the region’s Php361
minimum wage is not even one-fifth (18%) of the Php2,053
FLW. ###
 Philippine Statistics Authority’s (PSA) data for average daily basic pay (ADBP)
in 2022 compared to profits computed from the Annual Survey of Philippine
Business and Industry (ASPBI) for 2022