Staggered, more ‘doable’ wage hike proposed

Staggered, more ‘doable’ wage hike proposed

A lawmaker suggested on Wednesday that the proposed P100 increase in the minimum daily wage of private sector workers be done in installments over a three-year period to make it “doable” for businesses still recovering from the pandemic.

Manila Rep. Joel Chua said that while he was in favor of a wage hike, it should be implemented without creating more problems, stressing that “Congress should be able to balance the interests of workers and those of businesses.”

A similar suggestion was offered by businessman Joey Concepcion, founder of the entrepreneurship advocacy Go Negosyo, who said the pay increase should be done on a staggered basis to allow businessmen to plan and prepare for it.

Concepcion did not give a time frame for its implementation, saying he would leave the details to experts.

House version

On Monday, despite broad objections from business groups, the Senate unanimously passed on third and final reading Senate Bill No. 2534 which seeks a P100 daily wage hike for private employees. The House of Representatives has yet to approve its version of the measure, as several bills for salary increases ranging from P150 to P750 remain pending before the labor and employment committee.

Chua cautioned against a onetime, big-time pay hike, outlining three possible scenarios should this occur.

“First, businesses can pass on the increased labor costs to consumers, which means prices of commodities could go up. Second, businesses might lay off their workers. Third, some COVID-hit businesses that are just starting to recover from the pandemic may close,” he said.

Shock to economy

According to Chua, the wage increase should be implemented in such a way that “would not shock the economy,” explaining that small, micro and medium enterprises might not be able to comply.

Concepcion, for his part, pointed out that any salary hike

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