A CLOSER

LOOK AT THE
FILIPINO
WORKERS
 Filipino workers
are in demand all over the world.

They possess certain characteristics and

skills that are needed in the different
industries here and abroad.
• Workers are very essential and valuable
in the economy.
• Other factors of production become
futile if there are no workers.
• According to Karl Marx, the workers are
the real producers of the country.
SALARY/WAGE
• The income that a worker receives
• The monetary remuneration of workers
according to contract and on hourly,
daily, or piecework basis including
commission and other benefits
• This is the system used by government
and private offices
IMPORTANCE OF
WORKERS
• Process the raw materials of agriculture.
• Conserve and utilize the natural
resources.
• Acts as consumers of the products.
• Produce goods that are needed by the
economy.
• Operate and use machineries and other
technology.
• Give payment of taxes to the government.
THEORIES OF WAGES
A. Marginal Theory
- The wages are equivalent to the value of
products produced by the last worker
B. Wage-fund Theory
- The industry or the businessmen should not
wait for the products to be sold before
paying the workers’ wages
MORE ON MARGINAL
THEORY
• As applied to wages, the marginal-productivity theory
holds that employers will tend to hire workers of a
particular type until the contribution that the last
(marginal) worker makes to the total value of the
product is equal to the extra cost incurred by the hiring
of one more worker.
• As long as each additional worker contributes more to
total value than he costs in wages, it pays the employer
to continue hiring. (britannica.com)
C. Subsistence Theory
- The compensation of workers should be
enough to satisfy their needs
- The wages are based on the value of food,
clothing, and shelter which the workers
need
DIFFERENCE
BETWEEN NOMINAL
WAGES AND REAL
WAGES
NOMINAL WAGE
- Refers to the amount received as
payment for the services and produced
goods by the workers

Ex:
A. Teacher – 20,000/month
B. Basketball player – 500,000/month
C. Store Helper – 5,000/month
REAL WAGE
- The value of products and services
which the worker can buy from the
income he receives.
- If the inflation is high, the real wage
decreases.
Real Wage (RW) = Nominal Wage/CPI x 100
Real Wage (RW) = PHP 19,000/216.15 x 100
RW = PHP 87.9019 x 100
RW = PHP 8,790.19
*The P 19,000 salary of a teacher can buy
products and services worth P 8,790.19
PROBLEMS OF
FILIPINO
WORKERS
JOB SECURITY AND
LABOR FLEXIBILITY
- Workers could lose their jobs anytime
- Especially when there is a financial crises
A. Contractualization
: the process of hiring a worker continuously
for a period not more than five months for a
specific job
B. Outsourcing
: it is a scheme of subcontracting numerous
business-related operations to another
company
: A system used by different companies to
decrease costs by transferring portions of work
to outside suppliers
POOR LIVING
CONDITIONS
- Many workers live below poverty line
- They are having a hard time making both
ends meet
- Low wage is one of the causes why
workers have poor living conditions
LOW WAGES AND
INCOME
- Most Filipino workers are never paid with
wages commensurate to their labor especially
when compared to what their employers gain
as profit.
A. Living Wage
: the amount of family income needed to provide
for the family’s food and other basic necessities,
with sufficient allowance for extra needs, for
social security, and for savings and investment.
B. Minimum Wage
- The lowest wage rate including the
mandated cost of living allowance to be
paid to workers that is approved by the
government
- It varies depending on the kind of jobs
REPUBLIC ACT NO. 6727
(WAGE RATIONALIZATION ACT)
- It determines the wage rates for each
and every region of the country
- The approved wage rates can hardly
meet the daily needs of the workers
There are pressing concerns about the
conditions of our workers, here and abroad,
like non payment of wages and other
benefits, poor accommodation, illegal
dismissal, and violation in their contract.
 SEE IT, SAY IT!
1. It is the lowest wage rate including the mandated
cost of living allowance to be paid to workers that is
approved by the government.
2. The monetary payment of workers on an hourly, daily,
or piecework basis
3. The wage theory that was based on the additional
products produced by workers
4. It is a scheme of subcontracting numerous business-
related operations to another company.
SEATWORK
ESSAY.
Answer each question in not less than four
sentences.

1. How can workers be assured of job

security? Cite some ways and explain.
2. Why are workers important for the
development of the economy?