Tax exemption cannot replace substantial legislated across-the-board wage hike – KMU

“Thanks, but no thanks. The tax exemption for minimum wage earners cannot be a substitute to our demand for a substantial legislated across-the-board wage hike.” 

This was the reaction of Kilusang Mayo Uno Executive Vice Chairperson Joselito Ustarez to the recent passage of the tax exemption law for minimum wage earners. 

Deficiency

“While we welcome any augmentation in wages, the P33 to P35 expected additional take-home pay from the tax exemption is still highly insufficient to meet the daily cost of living.” 

Ustarez cited IBON databank study that the P382 NCR minimum wage is only 38% of the P871 current living wage in the area, down from 46% of the living wage in January last year. 

“Considering the steady upward spiraling of prices, and the insignificant adjustment granted by the regional wage boards, the urgency for a legislated across-the-board P125 wage hike is not lessened in any way even with the passage of tax exemption law.” 

He also said minimum wage earners only comprise 2.8 million out of the 36 million in the labor force. 

Regional wage boards also effected a measly P7 to P20 adjustments in basic pay or COLA this month. 

Fruit of labor

Ustarez also reminded that the Arroyo administration does not deserve gratitude for the tax exemption law. 

“Whatever benefits we reap now, it is born out of the struggle of the workers and people for substantial wage hike and decent living. Government only yielded partially to our protests,” Ustarez said. 

“So this is not the time to be contented and to loosen up, rather, we should further intensify our campaign for a substantial wage increase.  

“There is still a big disparity between the P33-35 from the tax exemption compared to the P125 wage hike we have demanding for years now.” 

KMU is set to picket Congress Labor Committee Head Magtanggol Guinigundo’s residence in Valenzuela tomorrow to push for a special session of Congress on the P125 bill. ###