Travel in the Philippines

Minimum Wage in the Philippines
By:Rusty Ferguson

Minimum Wage in Cebu Rises

The minimum wage in Cebu is going to rise to P285 a day. That's per day, not per hour. That's about $6.33 a day or about 63 cents per hour. Depending on how long one works. Many work 12 hours a day. Some work 8 hours per day. That compares to a US Federal wage rate of $7.25 an hour or $72.50 a day for a 10 hour day. The increase in Metro Cebu City is only P18 a day. Metro Cebu includes the following cities:


These Municipalities will also receive the same increase:

San Fernando

The closest thing to a municipality in the USA would be a town but the mayor Cebu City has greater influence over these municipalities than a mayor of say Memphis, Tn would over Bartlett, Tn. How much authority the Governor of Cebu Province has over a municipality is greater for a municipality than it is a City in the Philippines. Cities in the Philippines must meet certain requirements and when they do, they split a fund provided by the Philippine national government.

I'm interested in Philippine politics and how the local government units (LGUs) work but I don't fully understand all the nuisances of that yet so keep that mine mind when you evaluate definitions. As always, I would enjoy being educated further by Filipino. Please enlighten me further with your comments!

The increase varies throughout the Central Visayas or Region VII which includes Cebu Province. Other cities will see the following wage increases:

Toledo and Bogo City will see a rise to P265, up from the previous P247.
Bohol and Negros Oriental provinces will have a daily wage of P255, up from P237.
Siquijor and Bantayan and Camotes Islands will get P240, up from P222.

The wage in The Central Visasays is set by The Regional Tripartite Wages and Productivity Board. This increase was issued by Wage Order No. 15. It must be submitted to the National Wages Productivity Commission. It will take effect at the end of August.

However, some exporters are to get a 90 day delay in the increase. Also some exporters within Mactan Island are not covered by the increase. The increase is expected to immediately benefit 45,000 to 65,000 workers. The region has between 85,000 to 100,000 workers. The Philippine census conducted in 2007 indicates that there are 6.4 people living in the Philippines. So only 15 percent of the people have jobs? If even half of the population are children, then that would be a 70 percent unemployment rate? Wow!

However, many more are working for less than the minimum wage, off the books, and so they are not being counted. So many more Filipino work. Still, it gives another glimpse into one of the causes of poverty in the Philippines.

The minimum wage in Metro Manila is P402 a day or about $8.93 per day.

Workers living in Cebu will have a slightly improved experience in their daily lives. I wonder how much it will help. Its less than 50 cents per day. Of course, increase the minimum wage to quickly would increase the unemployment.

The low wages are one of the things that make the Philippines an enticing place for Westerners to retire. I can't help but feel a little guilty. On the other hand, I am spending my money in the Philippines and that helps the Philippines economy while it also enriches my life experience.

If you like to travel, live life like as an expat or are thinking about doing that, visit CebuExperience.Com for expert advice from those that already live it. Or come share your tales with us!

Living In The Philippines

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