A PROPOSED P100 legislated minimum wage increase could lead to a 15 to 25 percent increase in employee costs especially for small companies, the Department of Labor and Employment (DOLE) said Tuesday.
Labor Secretary Bienvenido Laguesma said the previous round of wage hikes implemented by Regional Tripartite Wage and Productivity Boards showed minimal impact in employment levels.
“Meron ding mga nawalan ng hanapbuhay pero hindi naman ganon karami at kayang mabigyan ng paggabay para makabalik ‘yung mga manggagawang napinsala,” he said in a TeleRadyo Serbisyo interview.
However, he also noted that any talk of a wage hike sets off an inflationary chain reaction starting with increases in transportation costs.
“Sa dakong huli maaari ‘yung karagdagang purchasing power ay baka ma-erode pa. Imbes na maging stable, baka maaaring magkaroon ng adverse na epekto,” he said.
Micro, small and medium enterprises or MSMEs in the countryside could also have a harder time attracting investors if wages are too high, Laguesma said.
Top economists of the House of Representatives earlier rejected the Senate’s proposal for a legislated wage hike. (ABS-CBN News)
