Senator Sherwin Gatchalian has recommended P1,500 monthly financial aid for minimum wage earners affected by the rising prices of fuel and other commodities brought about by the in the US-Israel, Iran conflict.

Gatchalian, chairman of the Senate Committee on Proactive Response and Oversight for Timely and Effective Crisis Strategy (PROTECT), said pointed out in his preliminary report that the Middle East crisis causes workers to lose purchasing power as prices rise faster than wages.

Establishing a targeted monthly cash relief program—providing P1,500 monthly relief for five million minimum wage earners—as a short-term solution, “should be seriously considered” rather than an across-the-board wage order that may further burden struggling companies amid the crisis, He said.

This proposed program would cost the government roughly P7.5 billion per month.

“Typically, ang ating mga social amelioration are poverty-level and below. So we also recommended the minimum wage earners kasi near poor sila and susceptible sila sa inflation shock,” Gatchalian told reporters in an online interview.

Earlier, the Department of Budget and Management (DBM) assured the public that contingent funds are in place should the Department of Labor and Employment (DOLE) seek to extend the provision of financial assistance to minimum wage earners affected by the rising fuel prices.

Malacañang also said the government would study the request for financial assistance to minimum wage earners, the middle class, and government employees also affected by the oil crisis resulting from the Middle East conflict.

Asked about potential subsidies for the middle class, Gatchalian said the matter could be reviewed considering the middle class has a broad scope.

“Merong middle, middle low, middle high—very broad siya. So pwedeng pag-aralan kung sinong susceptible sa inflation shock. Ang importante dito ‘yung ‘pag tinamaan ka ng inflation shock, kaagad bababa ‘yung income mo or pwede kang pumunta sa poverty segment,” he explained.

He also said that the DOLE and the Department of Trade and Industry (DTI) should work together to deliver temporary income support to low-wage workers while also extending zero-interest or low-interest financing to vulnerable micro, small, and medium enterprises (MSMEs), so that worker relief would not come at the cost of mass business closures.