DOLE calls for 3 months of wages subsidy in the Philippines

A wage subsidy worth P24 billion (US$459 million) has been proposed to counter the impact of rising oil prices on workers.
By: | March 18, 2022

The subsidy, which will run for three months from April till June 2022, is expected to benefit one million workers.

Dominique Tutay, Assistant Secretary at the Department of Labour and Employment (DOLE), said the agency recognises the call for minimum wage increase due to the rising fuel prices, but it also supports the government’s continued economic recovery efforts.

She said, “With the current wages now extremely inadequate, particularly for the minimum wage earners, and the government’s economic recovery in full swing, subsidies may be extended to vulnerable workers, particularly those most severely affected by fuel prices and its domino effect on prices in food and basic goods and services.”

“At this time, given the indirect impact of global tension to the Philippine economy, we see that the wage subsidy is still important to Filipino workers,” she added.

The proposal has been submitted to President Rodrigo Duterte for his approval.

READ: MSMEs in the Philippines need subsidies than financing

The subsidy is intended to give “breathing space” for recovery and growth within the three-month period, particularly for micro, small and medium enterprises (MSMEs) that are only reopening with the easing of pandemic restrictions.

Meanwhile, DOLE also asked for the re-appointment of stakeholder representatives in NWPC and regional wage boards, according to the Inquirer.