When salaries rise, so do prices

By Nycel Jane Dela

           When the news broke that the House of Representatives had approved a ₱200 daily wage hike for private sector workers, my initial reaction was relief. At last, something concrete was being done. For many minimum wage earners, this additional amount could mean an extra meal, some savings, or even basic school supplies for their children. 

            But as I scrolled through social media and overheard conversations in the market, a more complicated picture began to emerge. “Ang baboy 600 na ang kilo!” someone exclaimed! and followed by “Mabalda naman ta sini sa presyo ka balaklon.” That moment reminded me of a common pattern in our economy: as salaries go up, prices often follow and sometimes even faster.

            The intention behind the wage hike is undeniably good. Workers have every right to fair compensation for their labor, especially with the ever-rising cost of living. However, we must not ignore the ripple effect. Many small business owners, already struggling with thin profit margins, might find it hard to absorb this increase. The usual fallback? Pass the cost to the consumer. Eventually, both the employer and the worker find themselves in a tug-of-war with inflation, where no one really wins.

           This brings us to the deeper issue, that wage increases without structural economic reform can be a temporary fix at best. Kung ang kita mo naga-taas, pero ang imo man nga palaligban mas mahal na subong, ara ka lang gihapon sa pareho nga problema.

We need to address not just how much people earn, but also how affordable basic needs are. If transportation, food, and utilities continue to rise unchecked, a ₱200 raise won’t make much difference in the long run.

I’m not against wage hikes, they’re necessary and just. But they must be paired with policies that stabilize commodity prices, support local industries, and protect both workers and small entrepreneurs. Otherwise, we end up in the same vicious cycle where a victory on paper becomes a burden in practice. 

The question is not just how much money we bring home, but how far that money can really take us. Because if every peso increase is met with two pesos’ worth of price hikes, then what have we truly gained?