(On Legislating a ₱1,000 Daily Minimum Wage with Government Wage Subsidy
as a Pillar of Inclusive Growth, Productivity, and Good Governance)
I HAVE long advocated for a ₱1,000 daily minimum wage, not merely as a labor issue, but as a strategic economic reform essential to empowering Filipino workers, strengthening domestic demand, and achieving inclusive national growth.
At its core, this advocacy rests on a simple truth: workers are not just factors of production—they are the primary drivers of consumption, productivity, and economic stability.
Wages as an Engine of Growth, Not a Cost to Fear
Raising wages empowers workers with purchasing power. When workers can afford food, housing, transportation, education, and basic dignity, they do not hoard money—they spend it. That spending fuels businesses, sustains MSMEs, expands the tax base, and strengthens the entire economic cycle.
This is consumer-led growth, not welfare dependency.
Yet today, minimum wage adjustments—largely managed through regional wage boards—have repeatedly failed to keep pace with inflation, fuel costs, food prices, and the real cost of living. Workers are expected to “cope,” not to progress. As a result, productivity suffers, morale declines, and inequality deepens.
This reality runs counter to the vision of Ambisyon Natin 2040, which promises a matatag, maginhawa, at panatag na buhay—not perpetual survival.
Investment Reality: Productivity and Governance Matter More Than Low Wages
I do not believe that investors will avoid the Philippines simply because labor costs are higher. Serious investors are not primarily attracted by cheap labor. They are attracted by: 1) High and reliable worker productivity; 2) Policy stability and predictability; 3) Low corruption and efficient government systems; and 4) Strong domestic demand.
A poorly paid, financially distressed worker cannot be fully productive. A fairly paid, secure, and motivated worker is more efficient, loyal, and innovative.
Productivity follows dignity.
Inviting investors on the basis of abused, low-income labor is not a sustainable investment strategy. It attracts short-term, cost-driven capital—not long-term, value-creating partners.
Ending the Low-Wage, High-Patronage Model
The Philippines has also relied too heavily on ayuda-based assistance, often distributed through politicians and corrupt agencies. This system has repeatedly shown that it: 1) Reinforces patronage politics; 2) Encourages dependency instead of productivity; 3) Creates leakages, discretion, and corruption; and 4) Undermines the dignity of workers.
Government funds given as political assistance do not build an economy. They build dependency and distortion.
Wage Subsidy: A Cleaner, More Dignified Development Tool
A government wage subsidy, properly designed, is what the Philippines needs to grow its economy and compete globally—without sacrificing workers.
Instead of routing public funds through politicized aid systems, support should be embedded directly into wages: 1) Workers receive income because they worked—not because they begged; 2) Funds are tied to actual productivity; 3) Transparency and traceability are improved; 4) Corruption opportunities are reduced; and 5) Dignity of labor is restored
A wage subsidy should be time-bound, transparent, and transitional—allowing businesses, especially MSMEs, to adjust while productivity, skills, and market demand rise. This approach transforms public spending from consumption aid into growth investment.
Competing Globally Without Leaving Workers Behind
No country becomes globally competitive by keeping its workers permanently poor. Nations that attract quality investments do so because they invest in human capital, decent wages, skills and productivity, and clean and credible governance.
We must stop using Filipino workers merely as a tool to invite investors—where only investors grow and workers remain poor. Growth that leaves workers behind is not development; it is extraction.
A New Social Contract for Inclusive Growth
A legislated ₱1,000 minimum wage, supported by a government wage subsidy, represents a new social contract: 1) Government shifts from patronage to empowerment; 2) Business gains a productive and stable workforce; and 3) Workers gain dignity, purchasing power, and upward mobility.
When workers earn more, they buy more.
When they buy more, businesses grow.
When businesses grow, tax revenues rise.
When revenues rise, the economy strengthens.
Let us stop pretending that cheap labor is our comparative advantage.
Our true advantage should be:
A productive and dignified workforce,
A wage system that reflects real living costs.
Clean, predictable, and corruption-free governance.
An economy where growth is shared, not hoarded
A government-supported wage reform is not anti-business.
It is pro-worker, pro-market, pro-productivity, and pro-nation-building.
I ask DEPDev for its honest, professional, and forward-looking assessment of this advocacy—not merely to manage poverty, but to end it through empowerment.
(A Consultative Meeting with DEPDev/3 February 2026)
