NCR workers face real wages lag amid spiking food prices, inflation

Workers in the National Capital Region (NCR) are grappling with a widening gap between their wages and the surging cost of basic goods that raises urgent concerns about the economic security of NCR's labor force and highlights the need for meaningful government intervention.

The December 2024 data released by IBON Foundation show that despite a nominal wage increase to PHP 645 per day, real wages adjusted for inflation stood at only PHP 518, while prices for essentials like rice, vegetables, and meat continued to climb.

The real wage, which is determined using purchasing power from 2018, shows how nominal income increases are insufficient to keep up with growing consumer costs. 

Despite a slight increase from PHP 505 in 2023 to PHP 518, the actual salary costs less than PHP 495 in 2021, displaying the slow recovery of workers' purchasing power in the face of ongoing inflationary pressures. 

In December 2024, the NCR's inflation rate was 3.1%, mostly due to rising food prices. Low-income families, who spend the majority of their money on food expenses, have been disproportionately affected by the sharp price increases for essential commodities like rice, meat, and vegetables. 

A clear picture of the difficulties experienced by Filipino workers is provided by the growing costs of basic food items. The price per kilogram of regular-milled rice increased from PHP 38 to PHP 45 between 2021 and 2024. 

The cost of chicken, pork, and fish (galunggong) has increased over time. The price of galunggong has significantly increased from PHP 238 in 2021 to PHP 287 per kilogram. With price increases to PHP 205 and PHP 379 per kilogram for fully dressed chicken and pork liempo, respectively, these protein sources are now even more out of reach for many households.

Some vegetable price increases were seen for other essentials including pechay (Chinese cabbage), camote (sweet potato), and potatoes over the same time period. Pechay reached PHP 104 per kilogram, while camote stabilized at PHP 83.

The sharp price hikes for eggplant and carrots are especially concerning. The price of eggplant skyrocketed from PHP 91 to PHP 137 per kilogram, while the price of carrots increased sharply from PHP 96 in 2021 to PHP 170 in 2024. 

The cost of even frequently used goods, such as tomatoes (PHP 213 per kilogram) and garlic (PHP 328 per kilogram), has increased dramatically, severely taxing household budgets.

The widening gap between wages and food prices calls for urgent action from policymakers to protect the economic welfare of workers and their families. While the nominal wage has increased drastically from PHP 2021 to 2024, these adjustments have failed to match the rapid rise in food costs, effectively diminishing workers' purchasing power.

As the nation grapples with these economic challenges, the disparity between wages and the cost of living remains a critical issue that demands immediate and sustained attention.