Colleen Mabalot & Djozel Yabut

REPORTING:

TOPICS

• HIGH WAGES RATES AND ECONOMIC RENT

• REAL WAGES AND VERSUS MONEY WAGES

• THE MINIMUM WAGE AND THE LIVING WAGE

• THE EFFECTS OF EMPLOYMENT DISCRIMINATION ON WAGES

WAGE:

• According to Wikipedia, A wage is a monetary compensation paid by an employer to an employee in exchange for work done. Payment may be calculated as a fixed amount for each task completed, or at an hourly or daily rate, or based on an easily measured quantity of work done.

•Wages are an example of expenses that are involved in running a business.

DIFFERENT METHODS OF WAGE PAYMENT SYSTEMS:

TIME RATE SYSTEMS:

• Time Rate System: The worker is paid by the hour, day, week, or month.

• High Wage Plan: A worker is paid a wage rate which is substantially higher than the rate prevailing in the area. In return, it is expected to maintain a very high level of performance, both quantitative and qualitative.

• Differential Time Rate: Different hourly rates are fixed for different levels of efficiency.

DIFFERENT METHODS OF WAGE PAYMENT SYSTEMS: PAYMENT ON RESULT: Piece Work and Combination of time and Piece Work.

• PIECE WORK: Straight piecework system: The wages of the worker

depends upon its output and rate of each unit of output. Differential piecework system: Provides for higher

rewards to more efficient workers. COMBINATION OF TIME AND PIECE WORK: Gantt task and bonus system: The system consists of

paying a worker on time basis of it does not attain the standard and on piece basis.

Emerson’s efficiency system: Minimum time wages are guaranteed, but beyond a certain efficiency level.

HIGH WAGE RATE:• POWER COST

• Trade Union Congress of the Philippines (TUCP) executive director Louie Corral argues that the way to attract investors should be through lower utility costs especially power rates as well as upgraded skills of workers instead of lax labor standards and low pay.

• Saying employers tend to cut down on labor when utility costs are high, Corral said government must regulate the generation of power in a way that would disable the artificial inflation of power rates.

TOP 5 HIGHEST PAYING JOBS IN THE PHILIPPINES:

SPECIALIZATION AVERAGE MONTHLY SALARY

• IT/ Computer-Software Php37,784

• IT/Computer Network/ Php33,029

Database Administrator

• Law/Legal Services Php27,033

• Actuarial Science/ Php27,032

Statistics

• Engineering-Electronics Php26,379

/Communications

ECONOMIC RENT:

• According to Wikipedia, Economic rent is any payment to

a factor production in excess of the cost needed to bring

that factor into production.

• In classical economics, economic rents are any payment

made for non-produced inputs such as location (land)

and for opportunities (patents).

• In neoclassical economics, economic rent that also

includes income gained by beneficiaries of other

contrived exclusivity, such as labor guilds and unofficial

corruption.

TYPES OF RENT:• Classical factor rent: Primarily concerned with the fee

paid for the use of fixed resources (e.g. natural)

• Neoclassical paretian rent: Extend the concept of rent to

include factors other than natural resource rents.

• Monopoly rent: Some returns are associated with legally

enforced monopolies like patents or copyrights.

• Land rent: It includes in political economy, including

physiocracy, classical economics, and other economic

thoughts are recognized as in inelastic factor of

production. Rent is a share paid to freeholders for

allowing production on the land they control.

LABOUR:• The generalization of the concept of rent to include

opportunity cost has served to highlight the role of

political barriers in creating and privatizing rents. In a

competitive market, the wages of a member of the guild

would be set so that the expected net return on the

investment in training would be just enough to justify

making the investment. In a sense, the required

investment is a natural barrier to entry, discouraging

some would-be members from making the necessary

investment in training to enter the competitive market

for the services of the guild. 

LABOUR:• The same model explains the high wages in some modern professions that have been able to both obtain legal protection from competition and limit their membership, notably medical doctors, actuaries, and lawyers. In countries where the creation of new universities is limited by legal charter, such as the UK, it also applies to professors. It may also apply to careers that are inherently competitive in the sense that there is a fixed number of slots, such as football league positions, music charts, or urban territory for illegal drug selling. These jobs are characterized by the existence of a small number of rich members of the guild, along with a much larger surrounding of poor people competing against each other under very poor conditions as they "pay their dues" to try to join the guild.

TERMINOLOGY RELATING TO RENT:• Gross rent - refers to the rent paid for the services of land and the

capital invested on it. It consists of economic rent, interest on capital

invested for improvement of land, and reward for the risk taken by

the landlord in investing his or her capital.

• Scarcity rent - refers to the price paid for the use of homogeneous

land when its supply is limited in relation to demand.

• Differential rent - refers to the rent that arises owing to

differences in fertility of land.

• Contract rent - refers to rent that is mutually agreed upon between

the landowner and the user. It may be equal to the economic rent of

the factor.

• Information rent - Information rent is rent an agent derives from

having information not provided to the principal.

HOW MUCH MONEY DOES A PERSON FROM PHILIPPINES EARN A DAY?• Cost of living in The Philippines (average, local)

• Jeepney ride – 10 pesos (medium distance transport)

• Cost of fuel per liter – p58 +

• Tricycad – city transport – p6 +

• Small bottle of water – p15-20

• Average local meal with meat – p69

• The reality of wealth distribution in the Philippines:

• A village girl or boy brought to a town to work as a house keeper can be paid as little as 0 to 50 pesos per day. They are given accommodation and meals (basic, as in rice and the floor).

• Official minimum wage in The Philippines is based on regions, and noted later on

HOW MUCH MONEY DOES A PERSON FROM PHILIPPINES EARN A DAY?• Low income earnings: • The average security person man or woman earns p250+ per day• The average guest house / hotel cleaner earns 250+ pesos per day• The Jollibee starting salary is 250+ pesos per day• A receptionist (starter) earns: p200 – 300 per day•Middle income earnings• A starting bank  teller earns p7,000 – 10,000• A call center employees earns p10,000 – 18,000 per month• An office administrator earns p10,000 – 20,000 per month• A basic teacher earns p15,000 – 18,000 per month• Upper income• A doctor earns between p18,000 – 35,000 pesos per month• An airline pilot earns 80- 100,000 pesos per month

CURRENT NOMINAL AND REAL WAGES:• BY REGION, NON AGRICULTURE (JUNE 2015)• According to the DOLE.

SOURCE:• https://en.wikipedia.org/wiki/Wage

• https://en.wikipedia.org/wiki/

List_of_minimum_wages_by_country

• https://en.wikipedia.org/wiki/Economic_rent

• http://www.thelongestwayhome.com/blog/philippines-journal/how-much-does-a-person-from-the-philippines-earn/• http://www.rappler.com/nation/95061-metro-manila-officers-labor-laws-compliance

• http

://www.nwpc.dole.gov.ph/pages/statistics/stat_nominal.html