A lawmaker on Wednesday insisted that the approved P85 increase in the minimum wage in the National Capital Region (NCR) is not enough, as it will be offset by the 12% value-added tax (VAT) and the continued increase in the price of goods, BusinessWorld reported.
In a statement, Party-list Rep. Sarah Jane I. Elago said that although the wage hike was a step forward, it fails to meaningfully improve workers' purchasing power. She argued that the combined impact of VAT and inflation effectively erodes the nominal increase, leaving low-income earners with little to no real gain.
The lawmaker urged the government to consider broader economic measures, such as price controls and tax relief, to complement wage adjustments. The debate comes amid rising calls from labor groups for a more substantial wage hike that matches the actual cost of living in Metro Manila.