Manila: Senator Joel Villanueva on Thursday said the PHP50 wage adjustment signals progress but underscored the need for structural reforms that would guide regional wage boards using updated, region-specific cost-of-living data.

According to Philippines News Agency, Villanueva, chair of the Senate Committee on Labor, expressed that while the wage hike is a positive development for Metro Manila workers, there is a need for a more sustainable approach through the proposed Living Wage Act. This legislation aims to establish a rational standard for determining minimum pay beyond the current legislated adjustments.

Filed as part of Villanueva's priority legislation for the 20th Congress, the Living Wage Act seeks to amend the Labor Code to ensure that minimum wages meet 'living wage standards' supporting basic needs including nourishment, shelter, clothing, education, and health for workers and their families.

The bill proposes that regional wage boards should "proactively review" and set wage levels based on an official formula estimating the cost of living for an average family in each region, rather than relying solely on petitions from labor groups.

Villanueva pointed out that current wage-setting mechanisms often fail to address economic disparities across regions, particularly in remote provinces where infrastructure gaps and limited business activity lead to significantly lower wages.

He emphasized that while wage levels in rural areas cannot match those of urban centers, a standard formula based on the living wage would ensure that workers receive enough for a dignified life.

Additionally, the bill aligns with the constitutional mandate for a living wage and supports the International Labour Organization's standard, which defines it as the amount needed to afford a decent life for workers and their families based on national circumstances.

Villanueva added that legislating a living wage would mark a shift from a subsistence-based model to a "rights-based and inclusive labor policy," affirming the dignity and value of the Filipino worker.