A proposed P1,500 monthly subsidy for minimum wage earners is being pushed as a relief measure for millions of workers struggling with higher prices of food, transport, and other basic needs.
The proposal seeks to provide direct financial support to about five million minimum wage earners as inflation continues to erode household income and weaken purchasing power.
Supporters of the measure said the subsidy could help workers cover daily expenses while also supporting consumer spending, a key driver of domestic economic activity.
The renewed call came after inflation rose to 7.2 percent, adding pressure on low-income households whose wages are often spent almost entirely on necessities such as food, rent, utilities, and transportation.
Using P1,000 in 2018 as the base value, purchasing power declined from P775.80 to P732.60 for the general population. For the bottom 30 percent of households, it fell more sharply from P773.40 to P715.82, reflecting the heavier impact of inflation on poorer families.
The proposed monthly subsidy is among the recommendations of the Senate Proactive Response and Oversight for Timely and Effective Crisis Strategy (PROTECT) ad hoc panel. If approved, the program would cost the government around P7.5 billion per month.
Senator Win Gatchalian, who reiterated support for the measure, said vulnerable workers continue to suffer from high commodity prices despite the country being distracted by political issues.
“Lest we forget, the country is still in a crisis amid all the political noise. Our people, particularly the vulnerable sectors, are suffering from high prices of basic commodities and need a little respite,” the legislator said.
He said the assistance would be especially helpful for minimum wage workers, whose income is quickly consumed by essential expenses.
“Malaking bahagi ng sweldo ng mga minimum wage workers ang napupunta sa pang-araw-araw na gastusin kagaya ng pagkain at pamasahe. Kailangan natin silang tulungang malagpasan ang krisis na patuloy nating hinararap,” he added.
Advocates said the subsidy would not fully offset the impact of inflation, but it could provide immediate breathing room for workers and their families while broader measures on wages, prices, and economic growth are pursued.