Charity Begins at Home – Philippines Senate Increases Staff Inflation Bonus by 300%

The annual inflation rate in the Philippines climbed to 8.7% in January 2023 (from 8.1% in December), and well above the expected 7.7%.   This was mainly driven by a significant jump in the cost of housing, electricity, gas and other fuel (8.5% in January vs 7% in December); food costs alone saw an annual rise of 11.2%.

The Senate employees are represented by the Senado Union, who have been campaigning for an increase to the living wage for employees.  In addition to the one-time bonus, the Senate has also agreed to increase medical benefits for its employees later in 2023.   Senator Raffy Tulfo has also filed a resolution for the Senate labor committee to hold hearings on minimum wage policies, commenting that an emergency wage order may be necessary to counteract the cost of living crisis.

Outlook for Employers: The Senate bonus has received widespread media in Philippines, and the Senado Union is hopeful this will herald a broader response from the public and private sector in addressing employee demands for greater financial support.