CAGAYAN de Oro City — A proposed P200 nationwide wage hike would not only put more money in workers' pockets but also help local businesses, create stronger consumer spending, and stimulate the Philippine economy, the Federation of Free Workers (FFW) said.
The labor group argued that higher wages quickly circulate through communities because workers spend most of their income on daily necessities such as food, transportation, rent, electricity, medicine, and their children's education.
“A worker's wage is another worker's income,” said Atty. Sonny Matula, FFW president.
Matula said additional earnings are typically spent in sari-sari stores, public markets, eateries, transport services, and neighborhood repair shops, allowing money to flow directly to small businesses and workers in the informal sector. You may also like: Supreme Court says illness isn’t grounds for dismissal
“Workers do not stash their money in offshore bank accounts or investment portfolios. They immediately spend it on their families' daily needs, and that money circulates back into local communities,” he said.
What it means for your family According to FFW, the proposed wage increase would help households cope with rising prices by giving families more room in their budgets for food, healthcare, school expenses, transportation, and utility bills.
The group said the additional income would particularly ease the burden on parents and household budget managers who continue to stretch limited earnings amid persistent inflation.
Why FFW wants one national wage FFW is urging Congress to pass a P200 legislated nationwide wage hike, saying workers across the country face the same rising costs of food, fuel, housing, electricity, education, and healthcare.
The federation also argued that the current regional wage system leaves workers doing similar jobs with different pay simply because of where they live.
“Poverty is not cheaper outside Metro Manila,” Matula said, stressing that workers deserve fair compensation regardless of their location.
Labor group warns against keeping wages low
The federation also called on the Marcos administration to support the measure instead of resisting it, saying low wages weaken consumer spending and slow economic growth.
“If the government continues treating low wages as an economic strategy, the Philippines will remain trapped in weak purchasing power, slow domestic demand, and widening inequality,” Matula said.
“No country has ever become prosperous by keeping its workers poor.”
Congress urged to act FFW said approving the proposed wage hike would promote social justice while strengthening the domestic economy through increased consumer spending.
The group also vowed to continue organizing workers and strengthening collective bargaining, saying stronger unions remain the most sustainable way to secure better wages and benefits.
“Government action is important, but lasting wage growth comes when workers are organized,” Matula said.
“Through stronger unions and collective bargaining, workers can secure better wages and benefits without having to wait for the next wage order," he added.
