Wages, Deficits, and the Value of Work

There is a fresh push in the Senate to raise the entry-level salary of Business Process Outsourcing (BPO) workers. More than a week ago, Senator Raffy Tulfo filed Senate Bill 1493, the BPO Workers’ Welfare and Protection Act, proposing a starting wage of at least ₱36,000.

Earlier, Senator JV Ejercito had introduced Senate Bill 1476 under the same title, which was read on First Reading and referred to the Committee on Labor, Employment and Human Resources Development on November 11. Tulfo’s version, filed the week of November 17, is now awaiting First Reading. The fact that two senators have advanced parallel measures highlights the urgency of the issue, with lawmakers converging on a shared advocacy: stronger protections and fairer pay for an industry that employs more than 1.8 million Filipinos and generates billions in revenue.

The call to expedite these bills is understandable. BPO workers often enter the sector straight out of school, and their wages set the tone for how the country values young labor in a globalized economy. But while we talk about BPO workers, we cannot forget our teachers. Senator Risa Hontiveros filed Senate Bill 211, the Dagdag Sahod Act, which proposes a ₱15,000 increase for public school teachers and non-teaching staff in basic education. As of August 4, it was read on First Reading and referred to the Committees on Civil Service, Government Reorganization and Professional Regulation; Basic Education; and Finance.

Today, the entry-level salary for public school teachers under the Salary Standardization Law is ₱30,024 per month, covering around 360,000 Teacher I positions nationwide. More than 900,000 teachers overall stand to benefit from Hontiveros’ proposal. Imagine the impact of such an increase on their families, their morale, and ultimately on the quality of education our children receive.

The challenge, of course, is funding. It is easy to say we want higher wages for BPO workers and teachers. It is harder to answer the question: where will the money come from? The government is already stretched thin, balancing infrastructure projects, social programs, and debt servicing. Every peso allocated to salaries must be justified against other pressing needs.

And here lies the bigger picture. The Philippines is running a budget deficit. In the first half of 2025 alone, the deficit reached ₱765.5 billion, a sharp increase from the previous year. Revenues are growing, yes, but spending is growing faster. We are spending more than we collect, and that gap is widening. It is a sobering reminder that every new law promising higher wages must be matched with a credible plan to pay for it.

So, what can be done? Let us intensify our fight against graft and corruption, ensuring that every cent of taxpayers’ money goes where it is intended to be. There is also a need to improve tax collection efficiency. The Bureau of Internal Revenue (BIR) and the Bureau of Customs (BoC) have made strides, but leakages remain. Closing loopholes and cracking down on smuggling could generate billions in additional revenue. Another option is to revisit tax incentives given to certain industries. While incentives attract investment, they likewise reduce government income. A careful recalibration could free up funds without discouraging growth.

We can also look at prioritization. Not every project in the national budget carries the same urgency. Some infrastructure projects can be phased, freeing resources for wage increases in sectors that directly affect human capital. Teachers and BPO workers are investments in people, and investments in people often yield the highest returns.

Debt management is another piece of the puzzle. The Philippines has been borrowing heavily, and while borrowing is not inherently bad, it must be sustainable. Negotiating better terms, refinancing existing debt, and ensuring that borrowed funds go to productive uses (and not in some politicians’ pockets) can ease the pressure on the deficit. This requires discipline and transparency, qualities that the public must demand from its leaders.

If we value education and the dignity of labor, then we must find ways to fund these wage increases responsibly. The challenge is real, but so is the opportunity to align our spending with our vision of a stronger, fairer Philippines.

 

For comments, email jojoterencio@gmail.com