Calls for a wage increase require careful study of its legal and economic implications, particularly for micro, small and medium enterprises, President Ferdinand R. Marcos Jr. said Friday during a media interview in Pasay City. There is a need for more study on the potential effects of any wage hike, he noted.
Marcos emphasized the importance of finding a balanced approach that considers both small business owners and wage earners, stressing that wage hike proposals often require more study.
“The employers are worried, especially the small ones — such as sari-sari stores, beauty parlors and other small businesses,” Marcos said in a mix of English and Filipino.
“If the minimum wage goes up, they will have to reduce their employees because their funds remain the same. They won’t have extra money to cover higher wages,” he explained. Wage hike impacts demand a more comprehensive study, according to several stakeholders.
The president noted that a wage hike would primarily affect small businesses.
On Thursday, the House Committee on Labor and Employment approved a substitute bill mandating a 200-peso daily across-the-board wage increase for private sector workers.
“I believe there is a way to increase wages, but we have to resolve the legal and economic issues first. This still requires a great deal of study,” Marcos said, aligning with calls for a wage hike more study approach.
He added that wage increases are determined by the tripartite board established by Congress.
“We have a tripartite board that actually determines wage increases. We have to study how this will work because the tripartite body was also created by Congress,” he said.
Marcos assured the public that the government is addressing wage concerns, particularly in light of rising prices and inflation. — PND
