Determining Minimum Wage of Domestic Workers: Methodology and Estimation
Author: Manuel F. Albis, Millete R. Santos & Sabrina O. Romasoc
Target 8.5 of the Sustainable Development Goals (SDGs) aims to provide productive employment and decent work that is characterized by equality, fair income, and safe working conditions for all. One crucial strategy to address this is the setting of minimum wages for the labor force. This warrants the principle of equal pay for work of equal value for all employees across all industries and sectors of employment. However, despite established minimum wage systems in the Philippines, domestic workers receive lower level of remuneration compared to other wage employees. This study revisits the process of determining and adjusting minimum wage levels for domestic workers in the country and proposes a regional estimation procedure anchored on two primary factors used in fixing the minimum wage: the needs of domestic workers and their families, and the household employers’ capacity to pay.
Keywords:domestic work, minimum wage, decent work