The NWPC and International Labour Organization (ILO) organized a webinar on the Living Wage Concept on 7 November 2024 to provide insights on the definition and methodology of estimating living wage.

Over 150 participants, composed of NWPC commissioners, officials and staff, and RTWPB chairpersons, vice-chairpersons, board members and board secretaries attended the event. The discussion built on key points from the February 2024 Meeting of Wage Experts in Geneva, Switzerland.

DOLE Assistant Secretary Lennard Constantine C. Serrano, in his opening message, emphasized the growing importance of addressing the living wage issue.

“The comparison between the minimum wage and living wage remains a key point of discussion, with growing pressure to align minimum wages with living wages…Our goal is to establish a robust and comprehensive approach to defining the living wage, one that is flexible and accounts for the unique socio-economic conditions in our country,” Asec. Serrano said, stressing the need to reassess whether current wage policies align with the needs of workers, the capacity of businesses, and the realities of the economy.

NWPC Executive Director Maria Criselda R. Sy said the webinar seeks to document and analyze the Philippine experience in minimum wage determination, including the current approach to defining “living wage.”

“Through this webinar, we aim to navigate this complex issue by improving our technical knowledge, learning from global best practices, and engaging our key stakeholders to shape wage policies that balance workers’ welfare and the interests of employers, while also keeping us grounded with our current economic realities,” Executive Director Sy said.

Meanwhile, ILO Country Director Khalid Hassan expressed appreciation for and reiterated ILO’s support to DOLE-NWPC’s commitment to advancing wage policies that ensure workers receive adequate wages.

“…The ILO Philippines is ready to support the country in reviewing its living wage methodologies, improving the criteria for estimating living wages to align with ILO principles, and strengthening the capacity of wage boards and other tripartite constituents,” he said.

Advancing fair wages and social justice

ILO Regional Wage Specialist Xavier Estupiñan, who served as resource person, underscored the importance of decent wages in combating poverty and inequality.

He explained the ILO’s definition of living wage as “wage that is necessary to afford a decent standard of living for workers and their families, taking into account country circumstances and calculated for the work performed during the normal hours of work.”

The webinar covered the methodology for estimating living wages, focusing on the calculation of essential goods like food, housing, healthcare, and education.

It discussed principles for living wage determination, which include a needs-based approach, transparency, robust data, and regular adjustments.

A practical example from Vietnam was presented, illustrating how to estimate costs related to food, housing, and other necessary expenses.

Mr. Estupiñan also emphasized the importance of aligning living wage initiatives with ILO principles, fostering social dialogue, and considering local contexts for sustainable wage practices.

He concluded by calling for continued support and collaboration to enhance living wage estimates and promote fair wages and social justice.

The webinar marks the first step in a three-part initiative by DOLE and NWPC.

The NWPC, with ILO’s expertise and support, will enhance the current living wage estimation methodology, align it with ILO principles, and conduct capacity-building sessions for RTWPBs by June 2025.