The October 2001 Labor Force Survey placed those in the labor force at 33.4 million persons.  Labor force participation rate was computed at 67.5 percent, employment rate at 90.2 percent and unemployment rate at 9.8 percent.  There were 30.1 million employed persons, of which 14.8 million were wage and salary workers.  From October 2000 to October 2001, the number of wage and salary workers increased by one million and this was attributed mainly to the increase in the services sector.

To effectively set an acceptable minimum wage to workers and employers, it is imperative that the characteristics of these workers be known.  This study aims to provide relevant data/ information on the profile of wage earners, with focus on minimum wage earners, to support the effective implementation of the “safety net” policy in minimum wage fixing.

In particular, the study aimed:

1.       To ascertain tile magnitude of wage earners as a whole and minimum wage earners in industries/ regions.

2.       To determine the characteristics of wage earners and differentiate these with the minimum wage earners.

3.       To establish the economic as well as socio-demographic profile of wage earners with focus on minimum wage earners.

4.       To identify areas necessitating in-depth or further research.

This study was commissioned by the National Wages and Productivity Commission (NWPC) in line with the “safety net” policy on minimum wage fixing.  The study utilized the 1998 and 1999 Annual Poverty Indicators Survey (APIS) data set to determine the profile of wage earners. 

The APS is conducted in-between the triennial Family Income and Expenditures Survey (FIES).  While the APIS allows for provincial tabulation, analysis in this study is limited to the regional level only as the sub-sample of wage and salary earners may not be enough to give reliable results at the provincial level.

In the APIS, wage and salary workers are identified as those who worked for private household or establishment for pay, worked for government/ government controlled corporation, worked with pay on own family operated farm or business and employer in own family-operated farm or business who draws salaries and wages from the enterprise.

The study was divided into three parts, namely, the analysis of the generated statistical tables fro the 1998 and 1999 APIS; the validation of information using some sample households in NCR, Region III, VIII and XI; and the creation of a database of key indicators on wage and salary earners with focus on minimum wage earners and technology transfer to NWPC staff.

Results

a.            Demographic Characteristics

The number of wage and salary workers declined by 3.3 percent from 14.0 million persons in 1998 to 13.6 million persons in 1999.  The decline was realized among male wage 811 salary workers only.  The highest percentage of wage and salary workers were found in growth areas such as the National Capital Region, Region IV and Region III.  In both 1998 and in 1999, a little more than half of the wage and salary workers graduated at least from high school Most of these workers belonged to the 20-44 age group.

b.         Basic Pay Characteristics

Wage and salary workers maybe classified into those who are receiving the minimum wage rate, above the minimum wage rate and below the minimum wage rate.  For purposes of the analysis, the last legislated minimum wage rate of P250 for NCR was used as basis.  Regional minimum wage rates were adopted for purposes of the regional analysis.

About five in every ten wage and salary workers, whether male or female, were receiving below minimum wage both in 1999 and in 1998 while only three in ten received above the minimum.  By age group, workers below 20 years old were mostly minimum wage earners while those at the middle age group were a little spread across the three basic pay categories.  A greater percentage among females than males received above minimum wage both in 1999 (males – 27.4%, females – 32.1%) and in 1998 (males – 26.2%, females – 31.3%).

As expected, the higher the educational attainment, the greater is the wage and salary received. The educational attainment of a worker is directly related to the basis pay he receives.  Majority of those who have graduated at least from high school received at least the minimum.

c.            Educational and Economic Characteristics

The wage and salary workers differed in the kind of occupation they were doing.  In this portion of the profile of the wage and salary workers, they were distinguished according to six major occupations such as:  professional and technical workers; administrative and executive workers; clerical workers; sales and service workers; agriculture, animal husbandry and fishery workers; and production and related workers.  Note that sales and service workers were grouped together because these were in the same category in the new Philippine Standard Occupation Classification (PSOC).

About 85.6% of the total wage and salary workers in 1998 were in the non-professional/ non-technical/ non-administrative positions.  However, this percentage went down to 80.6% in 1999 while the number of those in the professional/ technical/ managerial positions increased by 5 percentage points.

The biggest proportion of wage and salary workers was in the service sector, 53.5% of them worked in this sector in 1998, later increasing to 54.2 in 1999.  The service sectors were composed of wholesale and retail, transportation, storage and communication, financial insurance, real estate and business and community, social and personal service.

The proportion of male wage and salary workers in agriculture, fishery and forestry to the total male wage and salary workers was higher than that of the female.  This implied that women’s participation in agriculture, fishery and forestry was minimal in the sense that they were not the one directly involved in the main activities of these sectors such as plowing and harrowing, planting, catching fish, etc.

Among the regions, Cagayan Valley and Western Visayas reported to have more than 40% wage and salary workers in agriculture, fishery and forestry as well as in the service sectors in both periods.

ARMM reported to have 73% of the total male wage and salary workers were engaged in service sectors in both reference periods.  In the female side, Eastern, Visayas, Cordillera Administrative, ARMM and Caraga had more than 80% of their female wage and salary workers involved in the said sectors.

The interrelationship between education and the type of occupation is well established.  Wage and salary workers who finished less than high school were mostly in agricultural labor occupations).  Using the 1999 occupational classification, this percentage represents more than half (61.4%) of those who have not completed any grade at all worked as laborers and unskilled.

d.            Housing and Household Characteristics

Of the 8.6 million families with employed wage and salary workers in 1999, 67.7 percent owned the house and lot they live in.  This proportion increased by 3.6 percentage points from 64.1 percent in 1998.

Among families with employed wage and salary worker, families with members receiving both the minimum and above minimum wage obtained the highest percentage of families with own or owner like possession of house and lot at 77.7 percent.  This was followed by families with members receiving below the minimum, minimum wage and above the minimum wage at 75.0 percent.  This holds true for 1998.

More than half (55.5%) of the families with employed wage and salary worker had access to clean and potable water in 1999.  This figure is 4.8 percentage points higher than the estimate reported in 1998.  The percentage of families with employed wage and salary worker with sanitary toilet was 89.2 percent, higher by 4.5 percentage points from the 1998 figure.

Radio and television are the most common household convenience found in wage earners homes.  About eight in ten families with employed wage and salary workers owned radio.  This was true both in 1998 and 1999.

e.            Validation

The evaluation survey was administered to a ten percent (10%) sample of the identified wage and salary workers in the four selected areas, namely, Quezon City (NCR), Pampanga (Region III), Cebu (Region VII) and Davao del Sur (Region XI).  The three regions were selected to represent the three major island groups.

Of the 494 sample wage earners, 332 were found to be working with the same employer as in 1999, 105 have shifted employer while 57 were no longer working.  Majority of the wage and salary earners were working for private  households or establishments or in family operated activities, 267 out of 332, while only a few worked for the government.  This trend is true in all the four selected areas covered.  Wage and salary earners in private establishments were usually in manufacturing industry.  They worked mostly as trade and related workers or laborers and unskilled workers.