MANILA – Budget secretary Benjamin Diokno opposed the proposals to set a higher national minimum wage of P750, saying this will lead to less employment opportunities.
“When you set a minimum wage higher than … the supply and demand, it will exacerbate unemployment. That is the impact of that,” Diokno said in a forum in Pasig City.
“When you set the minimum wage too high, less people will be employed,” the Budget chief said.
Progressive lawmakers filed on Monday House Bill 7787, seeking to increase the national minimum wage to P750 to lessen the burden of Filipinos, especially the poor, caused by the effects of the Tax Reform for Acceleration and Inclusion (TRAIN) law and other factors.
Bayan Muna party-list Representative Carlos Zarate said Filipinos need a wage hike to reach the family living wage of P1,168 just to keep up with the surging prices of basic goods.
Negros Oriental representative Arnolfo Teves said increasing the minimum wage will be detrimental to the economy as foreign companies that have opened business in the country will be forced to increase their cost of production or prompt them to leave the country.
“At the same time, we already succeeded in reducing unemployment around 6 to about 5 percent. So, I think, that means we’re doing the right thing. So why do you want to set high minimum wages?” Diokno said.
Unemployment rate declined to 5.3 percent in January, according to the Philippine Statistics Authority.
The Malacañang likewise dismissed calls for the government to ease the impact of higher commodity prices by setting a new and higher minimum wage across the board, citing legal constraints. (GMA News)
