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A
10-PERCENT increase in the salary of government
employees and a P40 hike in the pay of private sector
workers could increase total production cost by 5.6
percent this year, according to the National Statistical
Coordination Board (NSCB).
In its
web site, NSCB said that based on its price cost
analysis using the 2000 input-output model, trading will
be the most affected, followed by public administration
and defense and construction.
NSCB, an
attached agency of the National Economic and Development
Authority (Neda), said this would cause prices of goods
and services to increase by an average of 5.6 percent
and the cost of household expenditures to rise by 5.2
percent above normal inflation.
“This
means that an average household member, who spends P100
day-to-day and with a normal inflation of say 4 percent,
will be spending at least P109 a day in 2007,” said NSCB.
For
2008, if another P40 hike will be given to the private
sector, the NSCB projected that total production cost
will increase by 4.3 percent. The most affected sectors
would be trading and construction.
“Prices
of goods and services as well as household expenditures
will increase, on the average by 4.6 percent and 4.4
percent, respectively,” said NSCB.
Starting
July 1, 2007, government employees will get a 10-percent
increase in their basic salaries, under Executive Order
611 signed on March 14.
Thus, an
employee with a Salary Grade (SG) of 1 who is currently
earning P5,082, will receive an additional
P508.20. Meanwhile, the President with salary grade 33,
the highest among all employees of the government, will
get an increase of P5,775. --J.A.Ng |
