Does a minimum salary of 25,000 pesos a month for Filipinos help our economy?
By sgt_keroro
@sgt_keroro (44)
Philippines
June 4, 2007 1:51am CST
i am posting this topic because i heard it over our local radio. It is a proposal that if the minimum wage for Filipinos will not lower down to 15 thousand pesos, the economy will boost. This is because, the purchasing power will rise giving more income to companies. This is like a cycle that if the employers give high salary, it would generate more stable income.
1 person likes this
4 responses
@rsa101 (38166)
• Philippines
4 Jun 07
I guess that's a very simplictic way of looking at how economics run. Well for one if you increased the minimum salary to 15k that would mean that the prices of comoodities would also rise since production cost would also increase. Many small to medium enterprise would eventually close becuase they could not afford to pay their employees. Eventually economy will break down becuase of these.
These are the reason why legilating a wage increase is so difficult to implement becuase they have to look at the small to medium enterprises the impact of the labor cost to production etc. etc. It is a very complex process and its not that simple that if you increase minimum wage everything will be ok for everybody.
@sgt_keroro (44)
• Philippines
4 Jun 07
yeah, by way of looking at my explanation its too simple. i am very interested of how the proponent lays down the complexities of his proposal. i have to obtain his compilation about this study.
@god_spear (498)
• Philippines
7 Jun 07
It is a good proposal and how will it be, can some owner of company willing to do that, when some employees ask salary increase they said its better to closed down than to give it since they can't afford it. For us Govt employee we will have our increase this July but the govt will give 10 % only of our basic salary so if less that 5k is the salary it will still small compare to the Pork barell of senators and congressmen. Why dont they give up that amount to us employees of the govt or give some incentives to private employees. If they will reduce that amount maybe that proposal of increase will be pushed through because there will be funds for that. I just hope that the new elected legislators will have time to look at this, cause every year they making budget . Can't they do something about it. Whenever they were campaigning they promise these and that and now they were elected we hope they fulfilled they promises. Its good that the one person who has a campaign line that he will make our dreams came true did not won the election if that happened how sure he was that he will make his promise came true.
@kyutstudph (1263)
• Philippines
4 Jun 07
I hope that proposal should be implemented in the future so that the economy will boost. Hoping by that time the prices of the commodities and services should be directly proportional with the income of the workers so that all of us have a stable life.
