Employers’ group cites possible job cuts, inflation over proposed P200 wage hike

February 1, 2025 , 10:00 PM

(February 1, 2025) – An employers’ group on Saturday raised concerns about the proposed P200 wage increase for private sector workers, citing possible job cuts or higher prices for goods and services.

This came after the committee on labor and employment in the House of Representatives approved a measure, mandating all private sector employers, regardless of company size or capital, to raise workers’ daily pay by P200.

“The bulk of the employment, nasa micro and small (businesses),” said Employers Confederation of the Philippines president Sergio Ortiz-Luis.

“‘Yung maliliit (na negosyo), dalawang bagay ang puwede nilang gawin. Tataasan nila ‘yung presyo, kung kaya ng merkado, or magbabawas ng tao para maka-sustain sila sa increase na ‘yan. Kung ‘di nila magawa ‘yung dalawang bagay na ‘yon, eh wala na silang choice, baka magsara na lang sila.”

Wilson Flores, who owns a bakery in Quezon City, shared similar concerns. His business currently spends around P31,000 daily on wages for 48 employees, amounting to more than P800,000 in monthly payroll.

He said the proposed P200 wage increase would add an additional P250,000 to his monthly expenses.

“Nagagalit accountant ko. Kinompute niya. Sabi niya, ‘Sir, ‘pag ginawa ng mga pulitiko ‘yan baka kailangan tayong mag-alis ng tao or kailangan, mapilitan magtaas ng presyo.’ ‘Yung minimum wage, okay na ‘yan. Dapat ibaba ang presyo ng pagkain at bilihin,” said Flores.

While employers warn of economic strain, workers say the increase is much needed.

Maria Elena Lines, a 22-year-old employee at the same bakery, earns P645 a day, the current minimum wage in Metro Manila.

“’Yung P1,000 mo, mabilis maubos. Nag-a-apartment po ako eh ang mahal po ng apartment,” said Lines.

The measure already passed the committee level in the House of Representatives but Pres. Bongbong Marcos Jr. said the bill needs further study to see how it would affect small businesses.

“Palagay ko naman there is a way to increase that (salary), but we have to resolve the legal issues, we have to resolve the economic issues. So, it still deserves a great deal of study,” said Marcos.

The Department of Labor and Employment (DOLE), meanwhile, took a neutral stance.

“Hindi kami humahadlang, hindi kami nagtutulak. Nagbibigay kami ng inputs. Ano ba ang puwedeng maging epekto ng ganitong halagang may kinalaman sa usapin sa employment level, sa inflation rate, at sa atin pong tinatawag na GDP (gross domestic product),” said DOLE secretary Bienvenido Laguesma.

To date, the minimum wage stands at P645 per day in the National Capital Region, while workers in the provinces earn between P400 and P450 daily.

(With reports from JC Cosico, News5)

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