FILIPINO workers received one of the lowest gross monthly minimum wages in terms of purchasing power parity (PPP), according to a report released by the World Bank.
Based on the World Bank report, Filipino workers received a gross monthly minimum wage of only $27 in PPP terms, significantly lower than those received by workers in other Southeast Asian countries.
Using the 2018 PPP, statutory gross monthly minimum wages in Malaysia reached $588; Thailand, $537; and Indonesia, $284. These are 21.78 times, 19.89 times; and 10.52 times more than the estimates for the Philippines.
“We anticipate that over the coming months and years, PPPs and ICP (International Comparison Program) data will be increasingly applied to analyses and studies supporting the SDGs (Sustainable Development Goals) as well as in complementary and official indicators,” World Bank economists and statisticians led by Nada Hamadeh, World Bank head Economist and Program Manager.
“Price and expenditure data are already being collected and compiled for our next set of ICP results for reference year 2021, which are scheduled for release by end 2023. These results will shed light on the effects of the Covid-19 pandemic across the global economy, including its impact on progress towards meeting the SDGs,” they added.
The World Bank said PPPs measure the total amount of goods and services that a single unit of a country’s currency can buy in another country. It aims to equalize the purchasing power of currencies.
The report said the mean monthly earnings of Filipinos using 2018-based PPP terms was estimated at $677. This is the lowest among Asean countries on the list.
The data showed Malaysia’s mean monthly earnings using 2018-based PPP terms reached $1,815; Thailand, $1,140; and Vietnam, $732.
Using 2017 PPP terms, the World Bank said the country’s GDP was estimated at $815 billion and accounted for 0.7 percent of global GDP in that year. In East Asia and the Pacific, China’s GDP in 2017 PPP terms was the largest at $19.617 billion or 16.4 percent of global GDP.
This was followed by Japan at $5.173 billion or 4.3 percent of global GDP; Indonesia, $2.894 billion or 2.4 percent; and Korea, $2.106 billion or 1.8 percent.
Using 2011-based PPP, the World Bank also estimated that the mean consumption or income per capita of the poorest 40 percent of population was $2.81 while the mean consumption or income per capita of the population was at $7.5 between 2011 and 2018.
The World Bank experts said the importance of PPPs and ICP results were highlighted in the recent 53rd session of the United Nations Statistical Commission (UNSC) in analyzing the global economy.
They also noted countries’ progress in incorporating the ICP data collection and compilation into the day-to-day work of NSOs. The ICP’s important contribution to monitoring progress towards the SDGs was also recognized.