Union calls for wage subsidies in the Philippines

TUCP president representative Raymond Democrito Mendoza said, “We have long been urging the government to get ahead of the recession and put into place wage subsidies for those who are struggling to stay afloat.”

He added that wage subsidies are “urgently needed” since the economy has yet to recover from the impact of the pandemic lockdowns imposed last year. 

In response, the Department of Labor and Employment (DOLE) has promised to discuss the wage-subsidy proposal with other government agencies. 

DOLE secretary Silvestre Bello III said he will discuss the proposal with the Department of Finance (DOF), National Economic and Development Authority (NEDA), and Department of Trade and Industry (DTI). 

“Now assuming that a formal request will be sent to us, we will have to discuss with DOF, NEDA, DTI and find out how we can address this request,” he said. 

However, he said the outcome of the proposal would depend on the capacity of the government to give wage subsidies. 

“It’s a good option instead of asking for a salary increase or adjustment. They came up with this new concept of getting subsidies from the government. But again, it all depends on the capacity of the government to consider giving this subsidy to our workers,” he said. 

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Even though providing wage subsidies is a good suggestion, Bello said “there should be a thorough study on this” to determine whether the government has the resources to grant the request, according to Philippine News Agency.