Palace bucks legislated wage hike

Malacañang is not supporting the P125 legislated wage hike that the House of Representatives has proposed.

Speaking to reporters, deputy presidential spokesperson Abigail Valte said Congress must consider if employers could afford the salary increase.

The P125 increase is not “practicable” and it would be better for the regional wage boards to decide on the issue, she added.

Valte said P125 would amount to P3,250 increase per worker per month, excluding overtime, holiday pay and other benefits.

“The cost will be P1.6 trillion (in a year),” she said. “Our (wages) range between P8.5 trillion and P9 trillion.”

It would obviously be difficult for companies to absorb the increase, she added.

Valte said various firms might be forced to retrench some of their workers to have funds for the wage increase.

“Instead of being able to help the majority, some people may lose their jobs if the legislated wage increase will be this high,” she said.

“And we must remember, this is only for the daily earners, the minimum wage earners. If their salary increases by P125, companies will be forced to also increase (the wages) of those in higher levels of employment to avoid wage distortion. We want a wage increase that would pass inflation.”

Va l t e said it would be up to employers what other non-wage benefits they can give to employees.

“That way the company benefits, because of increased productivity and also the workers have something to push for when they see that their companies’ profits are growing, they also get incentive to be more productive,” she said.

“But we leave it to the employers for the time being (to determine) what kind of non-wage benefits they can extend to their employees.”

Valte said the Department of Labor and Employment (DOLE) and the Regional Tripartite Wages and Productivity Board were already cognizant of the calls to increase the minimum wage.

“Let the two agencies do their

work first, primarily because they are the ones in charge of determining what increase can stand to benefit the workforce and will be able to be borne by the employers,” she said.

“Ideally, wages must increase. It’s a progressive scale, ideally.”

Valte said Malacañang had urged the wage boards to speed up the implementation of an increase in minimum wage last year.

“We don’t want to intervene in the work of the Wage Boards and of DOLE,” she said. “As of now, they are already discussing because from what I understand there is already a petition filed by the TUCP (Trade Union Congress of the Philippines).”

Valte cited the one-year moratorium before the wage boards could tackle petitions for salary hike.

“That (moratorium) is due to be lifted in June,” she said.

The government is guarding the prices of basic commodities so as not to add burden to the people, Valte said.