DOLE warns of price hikes amid possible P100 minimum wage hike
THE Department of Labor and Employment ( DOLE) yesterday warned of possible increase in the prices of basic goods and services amid the possible P100 legislated hike in daily minimum wage.
DOLE secretary Bienvenido Laguesma said that while he agrees that wage hike will increase the purchasing power of workers, he warned that it may also have an impact on micro and small businesses.
“Al am po na tin na karamihan ng ating mga negosyante, nandoon sa maliliit na kategorya. Subalit
meron po sigurong kakayanin, meron ding hindi kakayanin,” he told “Unang Balita” in an interview.
He added: “Kapag merong pa g-u us aptungko ls a pagtaas ng suweldo, medyo nakakaramdam na po tayo ng pagtaas ng presyo ng pangunahing bilihin. Iyon pong may kinalaman sa transport. So para pong ano ‘yan chain
reaction. Kaya ang lagi naman pong tinatanaw ng DOLE sana mabalanse.”
In line with this, Laguesma said the DOLE is looking for possible interventions to help micro and small businesses in case the minimum wage increases by P100.
He said these interventions will also ensure that workers will remain employed despite the financial impact of the wage i ncrease on t heir employers.
There are over 4 million minimum wage earners in the country, Laguesma said, citing the Philippine Statistics Authority (PSA). ‘No Capacity’
For hi s part , ECOP president Sergio Ortiz-Luis Jr. said micro businesses do not
have the capacity to follow the proposed minimum wage.
“Hindi makakasunod ‘yung mga micro and dagdagan mo ng P100, 15% to 30% i- increase,” he told Dobol B TV in an interview.
“Anong palagay mo mangyayari s a 90% na ‘ yun? Kalahati noong noong pandemya nagsara, ‘yung iba naghihintay magbukas ay
ayaw na,” he added.
The ECOP president pointed out that even without t he i ntervention of t he Senate, regional wage boards are already working and reviewing minimum wages annually.
On Monday, Feb. 19, the Senate approved on third and final reading a bill increasing the daily minimum wage of workers in the private sector by P100.
Senate Bill 2534 or “An Act Providing for a 100 Pesos Daily Minimum Wage Increase for Employees and Workers in the Private Sector” garnered 20 affirmative votes, zero negative votes, and zero abstention.
The wage hike likewise
exc l u des e s t a b l i s hmen t s
with less than 10 employees, establishments utilizing a capital of P3 million and below, and establishments registered under Republic
Act 9178.
The current daily minimum wage in the National Capital Reg i on i s at P610.