(INQUIRER FILE PHOTO / GRIG C. MONTEGRANDE)
MANILA, Philippines — The proposed P200 across-the-board minimum wage increase still requires further study since it may lead to an increase in the cost of goods and services, President Ferdinand “Bongbong” R. Marcos Jr. said on Friday.
In an ambush interview in Pasay City, Marcos was asked to comment on some lawmakers’ calls for him to certify the proposed wage increase as urgent.
“Well, the thing is we have a tripartite board that actually determines the increase in the wage. So, we have to still — we still have to study it further to see how that will work together. Because this tripartite body was also created by Congress—they established it, wrote the law, and formed this kind of entity. It is their job to determine what the minimum wage should be,” he responded.
“So, now with this, I don’t know how that’s going to work together. But we will see. We’ll try to find a solution because, as you know, it’s clear that the prices of goods are rising, and inflation is still there. We haven’t fully brought it under control yet,” Marcos continued.
“Kaya’t it’s certainly something that we have to think about to assist ‘yung mga pangkaraniwan na tao,” he also said.
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(So it’s definitely something we need to consider in order to help ordinary people.)
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Might be ‘inflationary,’ burden to MSMEs
Marcos then raised concerns about how micro, small, and medium enterprises (MSMEs) would be affected by the proposed minimum wage increase, noting that they would be the ones directly impacted, not the large firms.
“The employers are worried, especially small business owners like those running sari-sari stores, salons, and similar establishments,” he said.
“‘If the minimum wage is increased, they might have to reduce their workforce because their budget remains the same—they won’t have additional funds to cover higher wages. So how will that work? How will it impact the economy? How will it affect MSMEs?,” he pointed out.
Furthermore, Marcos said they are also studying whether the wage hike could drive up consumer prices.
“And we are also studying whether this will lead to an increase in the cost of goods and services. In other words, it might be inflationary,” he said.
“We have to resolve the legal issues; we have to resolve the economic issues. So, it still deserves a great deal of study,” Marcos added.
The substitute bill seeking a P200 minimum wage hike was approved by the House Committee on Labor and Employment on Thursday.
The proposed P200 per day salary increase for minimum wage earners is P100 higher than what the Senate approved.