MANILA – The Department of Labor and Employment (DOLE) emphasized the importance of considering micro, small, and medium enterprises (MSMEs) before implementing the proposed P200 daily wage increase.
DOLE Secretary Bienvenido Laguesma, speaking at the Saturday News Forum, explained that MSMEs, which make up over 95% of businesses in the Philippines, could be significantly impacted by the wage hike.
He noted that the department is not opposing the proposal but is offering technical advice to assess its potential effects on employment, inflation, and economic growth, with the help of the National Economic and Development Authority (NEDA) and the Department of Trade and Industry (DTI).
According to the Philippine Statistics Authority, of the 1.25 million businesses in the country as of 2023, 99.63% are MSMEs. Micro enterprises alone account for 90.43% of this total. MSMEs collectively employ 66.97% of the national workforce, with micro enterprises contributing the largest share.
While DOLE is prepared to implement the wage increase if it becomes law, Laguesma clarified that Congress holds the responsibility for passing such legislation. President Ferdinand Marcos Jr. has also called for further study of the proposal, citing concerns about its impact on MSMEs.
The House Committee on Labor and Employment recently approved a bill mandating the PHP200 wage increase for private sector workers, applicable to all businesses regardless of size. The bill prohibits offsetting the increase with previous wage adjustments unless specified in collective bargaining agreements.
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