Minimum Wage Increase
Small Mercies
Minimum-wage earners in the private sector in Metro Manila will have a few extra pesos in their pay slips starting July. After a series of consultations with the various sectors that would be affected by its decision, the National Capital Region wage board approved a P25- per-day hike for the region’s minimum-wage workers.
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| The minimum wage of nonagricultural workers in Metro Manila now stands at P350 |
The wage order raises the minimum pay to P350 for nonagricultural workers and to P325 for those working in agriculture, private hospitals with a bed capacity of 100 or less, retail/service establishments employing 15 workers or less, and manufacturing establishments regularly employing 10 workers or less.
The P25 increase, however, is way below the amount petitioned by the Trade Union Congress of the Philippines and the National Federation of Labor Unions. The order has therefore drawn criticism from labor groups who expressed their outrage through protest actions. They contend that the raise is insufficient and doesn’t even come close to the estimated living wage for a family of six in Metro Manila. It is calculated that the breadwinner of a family of six needs to earn at least P749 a day to sustain a decent life.
Employers, on the other hand, are satisfied with the wage order. They say local businesses, most of which are small- and medium-sized enterprises, will be able to afford this amount. The government likewise approves of the amount, saying it addresses the need for higher wages without affecting the ability of businesses to sustain their operations.
The Metro Manila order is expected to influence deliberations on pending wage hike petitions in other regions. Wage boards in Ilocos, Eastern Visayas, Northern Mindanao, and MIMARO (Mindoro, Oriental Mindoro, Marinduque, and Romblon) are also expected to come out with their wage orders ranging from P15 to P20 in July.
ATM Banking
Network Linkup
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| 20 million ATM cardholders now have access to almost 6,000 ATMs nationwide |
With the formal launching of the Expressnet and BancNet linkup on 20 June, all of the country’s three ATM (automated teller machine) networks are now interconnected. This gives some 20 million ATM cardholders access to almost 6,000 machines throughout the country. Not only that, the linkup promises lower transaction costs and service fees, which currently range from P6 to P10 per balance inquiry or withdrawal if the transaction is done from another bank’s ATM. It is also expected that this interconnection will provide beneficiaries of overseas workers increased access to financial services provided by commercial banks, thereby encouraging the utilization of formal channels for remittance transfers.
The Bangko Sentral ng Pilipinas under former governor Rafael Buenaventura initiated the move to unite the three networks, BancNet, MegaLink, and Expressnet. At that time, BancNet was already interconnected to MegaLink, and MegaLink was interconnected to Expressnet, but BancNet and ExpressNet were not linked.
| Three-way linkup |
Consortium |
No. of ATMs |
No. of Member-Banks |
Cardholders
(In millions) |
Total |
5,944 |
56 |
18.2 |
Expressnet |
2,274 |
6 |
4.8 |
BancNet |
2,000 |
27 |
3.9 |
MegaLink |
1,670 |
23 |
9.5 |
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Related to this development, the Bangko Sentral has ordered banks to be transparent about ATM charges. The BSP is also drafting regulations to address electronic banking security.
The Philippine National Bank was the first Philippine bank to install an ATM in 1980, but the Bank of the Philippine Islands was the first to integrate ATMs with its banking services in 1983.
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