The Department of Labor and Employment (DOLE) stressed the importance of evaluating the potential effects of the proposed P200 daily wage increase on micro, small, and medium enterprises (MSMEs) before making a final decision. Secretary Bienvenido Laguesma highlighted the dominance of MSMEs in the Philippine economy, urging policymakers to carefully consider their unique circumstances.
The Department of Labor and Employment (DOLE) emphasized the crucial need to consider the impact of the proposed P200 daily wage increase on micro, small, and medium enterprises (MSMEs) before making a final decision. Labor Secretary Bienvenido Laguesma highlighted the significant presence of MSMEs in the Philippine economy, stating that over 95 percent of the more than 1 million enterprises are classified as such.
Laguesma clarified that DOLE is not opposing the wage hike but is providing technical inputs to assess its potential consequences on employment and the overall economy. In collaboration with the National Economic and Development Authority and the Department of Trade and Industry, DOLE is analyzing various scenarios to understand the implications of the proposed wage increase on employment levels, inflation rates, and gross domestic product.Data from the Philippine Statistics Authority reveals that as of 2023, 1,246,373 business enterprises operate in the country, with MSMEs comprising a staggering 99.63 percent (1,241,733) of the total. Micro enterprises constitute the largest segment at 90.43 percent (1,127,058), followed by small enterprises at 8.82 percent (109,912) and medium enterprises at 0.38 percent (4,763). These SMEs are responsible for generating 6,351,466 jobs, representing 66.97 percent of the country's total employment. Micro enterprises contribute the most significant share at 33.95 percent, closely followed by small enterprises at 26.26 percent and medium enterprises at 6.77 percent. Laguesma affirmed that DOLE, as the implementing agency, would comply with the wage hike bill if it were enacted into law. He emphasized that Congress holds the authority to pass or propose laws, and DOLE would faithfully execute any legislation passed
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