The proposed P200 daily wage increase for workers in the Philippines faces scrutiny due to potential impacts on micro, small, and medium enterprises (MSMEs). The Department of Labor and Employment emphasizes the need for comprehensive evaluation before implementing the proposed hike.
The proposed P200 across-the-board daily wage hike for workers in the Philippines requires further study, according to the government. The Department of Labor and Employment (DOLE) emphasized the need to consider the impact on micro, small, and medium enterprises (MSMEs), which constitute over 99 percent of all businesses in the country.
Labor Secretary Bienvenido Laguesma stated that with over 95 percent of the Philippines' 1 million enterprises being MSMEs, a thorough evaluation is necessary before making a decision on the proposed wage increase. He highlighted that Congress holds the authority to pass or propose laws, and DOLE, alongside the National Economic and Development Authority and the Department of Trade and Industry, will provide technical input on the potential consequences of the wage hike on employment and the economy.Data from the Philippine Statistics Authority reveals that as of 2023, 1,246,373 business enterprises were operational in the country. MSMEs accounted for 99.63 percent (1,241,733) of these establishments, while large enterprises represented a mere 0.37 percent (4,640). Micro enterprises comprised the largest share 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 MSMEs provided a total of 6,351,466 jobs, or 66.97 percent of the country's total employment, with micro enterprises contributing the most (33.95 percent), followed by small enterprises (26.26 percent) and medium enterprises (6.77 percent). President Ferdinand Marcos Jr. previously expressed concerns about the potential impact of the proposed wage hike on MSMEs, calling for further study. The House Committee on Labor and Employment approved a substitute bill mandating a P200 daily across-the-board wage increase for private sector workers last Thursday. This bill prevents employers from offsetting the increase with previous wage adjustments unless explicitly agreed upon in collective bargaining agreements. The DOLE chief also emphasized the role of Regional Tripartite Wages and Productivity Boards (RTWPBs) in setting minimum wages at the regional level. He noted that the last legislated national wage increase occurred in 1989, after which regional wage boards were established to adjust wages based on local economic conditions. Laguesma stated that these boards ensure minimum wages remain at a set floor, but additional compensation and benefits beyond the minimum should be negotiated between workers and employers
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