P100 private sector minimum wage hike may be difficult for MSMEs – DOLE

Department of Labor and Employment (DOLE) Secretary Bienvenido Laguesma on Saturday said the proposed P100 minimum wage hike in the private sector might create difficulties for some businesses.

Interviewed on Dobol B TV, Laguesma said the P100 proposal would result in an additional 15 to 25 percent increase in each employee's salary, excluding wage related benefits, citing data from the National Wages and Productivity Commission (NWPC).

“Medyo may kabigatan po. Dahil out of more or less one million na registered existing businesses sa atin, mahigit 900,000 nasa kategorya ng micro, small, and medium enterprises,” Leguesma said in an interview on Dobol B TV.

(It's somewhat sizable. Because out of more or less one million registered existing businesses in the country, more than 900,000 are in the category of micro, small and medium enterprises.)

However, Laguesma said it would be “contentious” to say that businesses will not be able to sustain the P100 increase.

On the part of DOLE, Laguesma said there was a need for the department to look at how to preserve employment, as well as to continue to create additional jobs to sustain the employment level.

“Kasi po kapag nakikita namin na ang mga hanapbuhay ay higit kaysa doon sa mga naghahanap ng hanapbuhay, puwedeng maglaro ‘yung tinatawag natin na market forces,” the DOLE Secretary said.

(If we see that there are more jobs than those who are looking for jobs, what we call market forces can come into play.)

“Kung gusto mong makakita ng manggagawa, sumabay ka sa mga benepisyo na hinahanap at gustong makita ng mga manggagawa na ipagkakaloob sa kanila. ‘Yon po ang mga konsiderasyon na dapat isinasaalang-alang,” Laguesma added.

(If a business wants to attract workers, it has to go along with the benefits workers are looking for and will be provided for them. Those are the factors that should be considered.)

Laguesma also said that small businesses needed to be helped following the COVID-19 pandemic.

He added that DOLE’s task, particularly through the NWPC, was to provide technical inputs, but a law on labor would be up to the Congress.

The bill seeking an additional P100 in the daily minimum wage of workers in the private sector reached the Senate plenary earlier this week.

In a radio interview, Senator Nancy Binay suggested excluding small and medium enterprises from the legislated wage increases.

“In fact, ‘yun din ‘yung isa doon sa exemptions na gagawin natin dito sa minimum wage increase eh ‘yung mga small and medium na mga negosyante, hindi kabilang dito sa minimum wage increase,” Binay said.

(In fact, that is also one of the exemptions we will be pushing here regarding the minimum wage increase. Small and medium-sized businesses are not included in the legislated minimum wage increase.) — DVM/VBL, GMA Integrated News