Senate OKs P100 min wage hike, FEF warns of price hikes

The Foundation for Economic Freedom Inc. (FEF) expressed opposition to a proposed Senate bill that would increase the minimum wage of private sector workers by P100.

According to FEF, this measure could lead to higher prices and a wage-price spiral, reducing public purchasing power.

On Monday, February 19, the Senate unanimously approved the bill on third and final reading, despite FEF's warnings.

FEF urged the Senate to maintain the current regional wage board mechanism for adjusting wages based on local conditions.

The organization also warned that such wage hikes could force the Bangko Sentral ng Pilipinas (BSP) to raise interest rates further, potentially slowing economic growth and investment.

Instead of a national minimum wage increase, FEF suggested liberalizing food imports by reducing tariffs and quotas to lower prices and boost purchasing power.

Regional Tripartite Wages and Productivity Boards have already issued orders for increases in the minimum wages in several regions across the country.