Rep Garin warns P100 daily wage hike may hurt MSMEs

Leading economists in the House of Representatives have warned that a proposed P100 daily wage hike could harm micro, small, and medium enterprises (MSMEs) in the Philippines.

Representative Janette Garin echoed these concerns on Thursday, stating that passing this burden to MSMEs may cause them to close down or lay off employees.

Garin emphasized during a press briefing that at this point, the primary goal should be sustaining all existing businesses rather than imposing financial strain on MSMEs.

The Senate approved a bill seeking to increase the daily minimum wage of workers in the private sector to P100 on Wednesday, with Senator Juan Miguel Zubiri appealing for the House to pass a similar bill.

Garin stressed that while the intention is good, many laws passed do not actually uplift people's lives, and she highlighted that MSMEs are also constituents of the government requiring support.

Speaker Martin Romualdez has directed a study on increasing the wage higher than what the Senate intends to approve, with discussions suggesting an increase of P350 or P400.