Inquirer
Legislated wage hikes to harm economy, hurt poor Filipinos – economic team
The Management Association of the Philippines (MAP) and the Marcos administration's economic managers oppose proposed legislated wage hikes of P100-P200.
Policymakers warned President Marcos of the "dangerous repercussions" of across-the-board minimum wage hikes.
A P200 wage increase could raise inflation by approximately 2 percentage points, while a P100 hike may add 0.7 percentage points.
They also highlighted that micro, small, and medium enterprises (MSMEs) may struggle to absorb the mandated wage increase, potentially leading to job losses.
Estimates showed that a P200 increase in the daily regional minimum wage could exert downward pressure on gross domestic product (GDP) by 1.6 percentage points, and a P100 hike by 0.5 percentage points.
MAP acknowledges the need to improve minimum-wage workers' lives but believes the proposed increase requires further review and broader consultations.
The economic team recommended maintaining the current system of wage adjustments through the Regional Tripartite Wages and Productivity Boards (RTWPBs) to better reflect local economies.
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President Ferdinand "Bongbong" Marcos Jr. will assess the economic impact of the P200 daily minimum wage hike bill approved by the House of Representatives.
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The House of Representatives approved on final reading House Bill No. 11376, seeking to increase the minimum wage of private sector workers by P200 per day.
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The Philippine Chamber of Agriculture and Food, Inc. (PCAFI) urged President Ferdinand Marcos Jr. to block the P200 daily minimum wage hike approved by the House of Representatives.
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Gabriela Party-list Rep. Arlene Brosas said the minimum wage hike bill may still be ratified by the Senate and House before adjournment.
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House spokesperson Atty. Princess Abante accused the Senate of "killing" the proposed P200 minimum wage hike bill, stating that senators refused to convene a bicameral conference committee.
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