Regional wage is both beneficial to capital and workers.

Regional wage is determined through the needs of workers and their families by determining
the demand of living wage, the capacity to pay of the employers, the comparable wages and
incomes and the requirements of economic and social development.

The National Wages and Productivity Commission (NWPC) under Republic Act No. 6727 is
mandated to set the minimum wage. In different regions we have different classification they
will look in to the indicator movement of prices, needs of families, different expenditure of
pattern of employees, the employer capacity to pay, and the level of investment in a particular
area.

The Philippine can use this regional wage to protect the entry level wage rate for the unskilled
workers, and not to raise the average incomes of most workers. To encourage the rise in
wages, we must rely on policies to stimulate market forces. By having different regional wages,
inward investment can be encouraged as foreign investors do not need to look on high wage
economies because having a such can outscore more jobs in the country because of high
minimum wage standards.

We can attract investments to raise employment to lessen the large amount of unemployed
and underemployed workers, as demand expands and rising employment as supply decrease.
The labor market is compose of demanders and suppliers of labor the one who will pay for
those wages are the demanders and if they cannot generate more value more than the wage
the business industry will have no sense. The labor market can become flexible in response to
changes in the rest of the economy. In fact, we can rely mainly on using inexpensive labor as
the principal resource to attract industrial investments. We can use foreign trade to enlarge the
markets served by our industries.

And Of course, for the view point of the workers, the cost of living is important in determining
wage rates. But so is the capacity of employers to pay the wages. The important matter is that
the wage that is paid provides an outcome that both workers and their employers need to
mutually accept. The imposition of high minimum wages will only cause loss of jobs for many
workers since the proposed bill is to have a national minimum wage of 750 a day and at this
rate the employers will have to adjust their capacity to pay for their laborers maybe by passing
the cost of increased wages to consumers by increasing the price for their commodities that
will affect the raise for cost of living and create a need for further minimum wage increase, or
by removing some of employees to remain solvent at this effect it will be burdensome not just
for the employers but also for the employees and for all, also, they may have to freeze new
hires and they may limit the opportunities for fresh college graduates and others that are
entering the job market.
This is beneficial to workers because workers and employers may be driven into the unofficial
labor market if they cannot provide or afford these changes they will hide so that these
conditions cannot be assessed and for their shortcomings to not be discovered, that will lead
to their informalities and once they become informal we cannot protect the rights of these
workers and employers.