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PIA Press Release

Commentary: Non-wage incentives to benefit informal sector workers

Tacloban City (April 26) - The non-wage incentives for the Filipino workforce, which will be unveiled by President Gloria Macapagal Arroyo on May 1 will benefit more number of Filipino workforce.

Thus was the comment of Department of Labor and Employment Regional Office 8 Director Forter Puguon during the interview at the Harampang Ha PIA this morning, where he together with the representatives of the DOLE attached agencies, were guests.

Director Puguon said that the greater number of workers in Region 8 belong to what is called as the informal sector. These are workers who do not earn a monthly wage. These are the agricultural workers, the small and medium entrepreneurs.

Director Puguon said that the employment rate of Region 8 is 93.5 % while in the entire country, it is 92.2%. Employed persons fall into any of the following categories, the wage and salary workers, own account workers and unpaid family workers.

More than half (53.4%) of the total employed population in January 2007 were wage and salary workers; 39.4 % were employed in private establishments while 7.9 percent were employed in government agencies or government owned and controlled corporations.

On the other hand, own account workers constituted 35.1 percent of the total employed, with the self-employed having the largest share, 30.4 percent. Unpaid family workers accounted for 11.5 percent of the total employed.

This means that while 39.4 percent of the total employed, are wage earners, there is a greater percentage of workers, 46.7 percent who belong to the informal sector and do not receive monthly wages.

If and when the President, therefore, announces non-wage benefits in terms of basic commodities, health, housing and others, more workers will be benefited, Director Puguon said.

Besides, President Arroyo is just being consistent because it is the Regional Tripartite Wages and Productivity Boards which are mandated to deliberate and declare wage increases in their respective regions.

In the case of Region 8, there is no pending petition for wage hike. Besides, it has been less than one year since the last wage increase, August, was implemented in the Region, Director Puguon concluded. (PIA 8) [top]

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