Legislated wage increase to scare foreign investors
hikes anytime.”
The PCCI said the legislative body should leave the decision to increase wages to the National Wages and Productivity Commission and Regional Tripartite Wages and Productivity Boards in accordance with Republic Act No. 6727 or the Wage Rationalization Act of 1989.
Disregarding the authority of the Wage Boards would be detrimental to attracting foreign investors into the country, Mangio said.
The PCCI urged the government to instead prioritize solutions to address inflation and other pertinent issues hindering the country’s economic growth.
Mangio said the ₱100 wage increase, while remaining to be insufficient to cover the rising prices of commodities, will only benefit five million workers. This excludes 47 million individuals who are employed in the informal sector.
“The ₱100 proposed wage hike will not even be enough when inflation goes up. Why don’t we instead legislate measures to address the rising cost in food prices and other issues that hamper our economic growth,” she said.
She lamented that the senators “did not even consider nor listen to the position of the employers and the business community.”
The Go Negosyo founder said during the Bagong Pilipinas Ngayon briefing on Wednesday that not all businesses will be able to afford to increase the salaries of their employees.
Concepcion, the Private Sector Advisory Council (PSAC) lead for jobs, said he is not against wage increases but rather it should be done gradually.
“Yes, large corporations can better afford that. But remember, how about our small to medium sized entrepreneurs which are bulk, they constitute a great majority of entrepreneurs in this country,” he said.
While he understands that wage hikes will help the economy, a sudden increase of ₱100 in the daily minimum wage is not the way to go forward.
“As wages do increase, of course consumption spending will increase as well. That will help the economy. But what we should do is not to implement ₱100 wage at one go; let us spread that over a period of time,” he added.
Concepcion explained that historically, no president—from the time of former presidents Gloria Arroyo to Rodrigo Duterte—approved a ₱100 increase in wages.
“Most of the wages were gradually increased overtime—₱15, ₱20, ₱25, ₱30,” he said.
While large corporations might be able to afford the bill’s proposal, Concepcion lamented that the same isn’t true for small- and medium-sized entrepreneurs.
“What we worry more are for those who are barely making it. Coming from the pandemic a year ago and coming back now, to what we call acceleration in Philippine economy. Let us not break the momentum,” he said.
Regional groups under the PCCI also shared their sentiments, with the PCCI South Luzon segment saying that “centralizing wage determination undermines the board’s ability to tailor wage policies to regional economic realities, thereby risking economic imbalances.”
Recommendations were made by PCCI Visayas to focus on the expansion of economic activities, promoting investments, implementing the ease of doing business (EODB), finding solutions to resolve inflation, and boosting regional agriculture and aquaculture sectors.
The National Economic and Development Authority (NEDA) also shared its concerns, citing its financial burden on micro, small, and medium enterprises (MSMES) who may not be able to afford the ₱100 wage increase.