McDonalds, an example of business which gives the minimum wage rate to its service crew employees ($1.33 per hour) in the Philippines |
To set an example, McDonalds in the Philippines gives only
₱60.13 ($1.33) per hour for its basic service crew employees. McDonalds in the United States gives at least $7.25 (₱328) per hour to its employees, which is more than 5 times the income the same McDonalds crew earns in the Philippines. However, living costs in the Philippines are much lower than in the United States and other developed countries.
Many small-scale businesses (such as variety stores) do not follow the minimum wage rate because their total gross income is not greater than the total employee wages if in case they do follow the rate. If this rule will be strictly enforced by law, many businesses will close themselves down due to foreseen bankruptcy.