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THE ISSUE OF JUST WAGE

The issue of just and fair wage is another hotly contested issue in the Philippines

The dilemma of just wage arouses because the employer and the worker usually comes from opposing
interest

The main interest of the employer is to reduce the cost of his or her business, and worker's salary is part
of at cost

The main interest of the worker is to increase his or her wage because it is usually his or her main way of
supporting his or her family

In determining a fair and just wage, we must bear in mind that there is really no exact mathematical
formula from which it can be derived

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Philippine Constitution and Republic Act 6727

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The Wage Rationalization Act declares that the policy of the state to rationalize the fixing of minimum

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wages and promote productivity-improvement and gain-sharing measures to ensure a decent standard
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of living for the workers and their families; to guarantee the rights of labor to its just share in the fruits of
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production; to enhance employment generation in the countryside through industry dispersal; and to
allow business and industry reasonable returns on investment, expansion and growth.
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Comparative Wage
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7 Factors that must be Considered in Determining a Fair and Just Wage


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1. Capability of the Business


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2. Nature of the Job


3. Cognizant of the laws on
4. minimum wage
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5. Relative proportionality and similarity of the nature of the job of the workers within the
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organization
6. Fairness of wage negotiations
7. Account for the cost of living within the specific locality where the business operate
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