MANILA, Philippines – The minimum wage in the National Capital Region (NCR) is at around Php500 but less than Php600. With that in mind, a worker on minimum wage earns less than Php18,000 a month, even assuming he works every single day on a ‘no-work, no pay’ basis.
Deduct taxes, SSS/GSIS, PhilHealth, HDMF/PAGIBIG, and other mandatory deductions could quickly get this number down to Php15,000-Php16,000. Accounting for fares/transportation, food, clothes, and other incidental expenses, a worker could only have Php10,000 to budget for the rest of his/her needs for the rest of the month.
Lumpia vendor’s earnings
Netizen Jomer Arañas posted how he was so impressed with a lumpia vendor’s earnings that he is considering a change of careers!
In a post on Facebook, Arañas shared a chat he had with a lumpia vendor who sells his products at Php20 per 3 pcs of lumpia. Everyday this manong sells 600 pcs of lumpia; more often than not, the products are sold out in just a few hours.
A surprised Arañas quickly made calculations, putting this vendor’s earnings at Php4,000 a day.
Php4,000 a day x 30 days = Php120,000
Anyone earning that much in one month is certainly earning a lot! But netizens quickly pointed out a flaw in Arañas’ calculation, because he did not factor in the lumpia vendor’s capital.
Assuming he spends 60% of that income on the actual costs of preparing and cooking the lumpia, this only gives him Php1,600 per day.
Php1,600 a day x 30 days = Php48,000
While Php48,000 is certainly much lower than the first projected amount of Php120,000, this second calculation is still much higher than what minimum wage earners get per month!
But other netizens shared their observation that the lumpia vendors aren’t rich, even if they are not paying taxes with these earnings. Some suggested that this is due to the vendors not really owning the capital they use to make the lumpia. Many are actually just getting the goods on a consignment basis; thus, the net earnings are still split between the original business owners and the lumpia vendors.
Still, if they had the capital, time, and ability to make these lumpia products on their own, the Php48,000 computation is already quite good if the business booms.
— Joy Adalia, The Summit Express
Deduct taxes, SSS/GSIS, PhilHealth, HDMF/PAGIBIG, and other mandatory deductions could quickly get this number down to Php15,000-Php16,000. Accounting for fares/transportation, food, clothes, and other incidental expenses, a worker could only have Php10,000 to budget for the rest of his/her needs for the rest of the month.
Lumpia vendor’s earnings
Netizen Jomer Arañas posted how he was so impressed with a lumpia vendor’s earnings that he is considering a change of careers!
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| Photo credit: Jomer Arañas / Facebook |
In a post on Facebook, Arañas shared a chat he had with a lumpia vendor who sells his products at Php20 per 3 pcs of lumpia. Everyday this manong sells 600 pcs of lumpia; more often than not, the products are sold out in just a few hours.
A surprised Arañas quickly made calculations, putting this vendor’s earnings at Php4,000 a day.
Php4,000 a day x 30 days = Php120,000
Anyone earning that much in one month is certainly earning a lot! But netizens quickly pointed out a flaw in Arañas’ calculation, because he did not factor in the lumpia vendor’s capital.
Assuming he spends 60% of that income on the actual costs of preparing and cooking the lumpia, this only gives him Php1,600 per day.
Php1,600 a day x 30 days = Php48,000
While Php48,000 is certainly much lower than the first projected amount of Php120,000, this second calculation is still much higher than what minimum wage earners get per month!
But other netizens shared their observation that the lumpia vendors aren’t rich, even if they are not paying taxes with these earnings. Some suggested that this is due to the vendors not really owning the capital they use to make the lumpia. Many are actually just getting the goods on a consignment basis; thus, the net earnings are still split between the original business owners and the lumpia vendors.
Still, if they had the capital, time, and ability to make these lumpia products on their own, the Php48,000 computation is already quite good if the business booms.
— Joy Adalia, The Summit Express
