Marcos says minimum wage hike may be implemented soon —Palace

President Ferdinand Marcos Jr. said an increase in the minimum wage in the country might be implemented soon to ensure workers were protected from the "rapid expansion" of the economy.

This was according to the Presidential Communications Office following the courtesy call in Malacañang of International Labor Organization director general Gilbert F. Houngbo.

Marcos said administration, through the Department of Labor and Employment (DOLE), had sat down with the workers and labor unions and organizations to strike a balance and alleviate the “inflationary pressures” on workers.

“But I think our negotiations with workers, with the unions, with the different negotiations, we will be able to come to a good working number, a good compromise,” Marcos said.

The PCO said the current minimum wage in the Philippines ranged between P372 and P470, depending on the region where the work is located.

The Department of Labor and Employment in May said ten wage hike petitions were pending and were under review by various Regional Tripartite Wages and Productivity Boards (RTWPBs).

Labor Secretary Bienvenido Laguesma said the DOLE would present to Marcos, and the other Cabinet members the Philippine Development Plan 2020-2023 before holding a national tripartite conference.

Marcos expressed said the rapid industrialization and the expansion of the economy could hurt the labor sector.

“When there is rapid industrialization and rapid expansion of the economy, there is a tendency to leave the labor sector behind and just exploit the labor sector,” Marcos said.

He said more than 96% of the businesses in the Philippines were small or “nano-enterprises.”

“Our workers, of course, are asking for a (wage) increase, workers in those small businesses. We might drive the businesses out because they (employers) cannot pay because they are too small,” Marcos said. 

Laguesma said the DOLE might be able to resolve the issue within the week as he agreed that majority of the businesses in the country are in the category of micro and small.

Marcos assured those who lost their jobs during the height of the pandemic that there were programs under the DOLE that they could avail.

“I think the important part of this whole discussion is that we continue to make sure that we are protecting our workers and their families, especially after the pandemic..." Marcos said.

"There has already been a social program in place for the lowest income stratum of our economy. But now, there is a special program under the Department of Labor and Employment,” he added.

“There is a special program for those workers who… find themselves out of work right now, they cannot travel, they cannot go anywhere. So we had to find a way to support them,” Marcos said.

Finance Secretary Benjamin Diokno in May said raising the minimum wage by P150 across the Philippines would increase inflation by 1.4 percentage points.

Diokno made the remark after a Senate committee granted in principle a P150 wage hike for all private sector workers across the country.

“The implication of a P150 [wage] increase… It will increase inflation by 1.4 [percentage points],” the Finance chief said, citing estimates from the National Economic and Development Authority (NEDA).

“So who will benefit from that? Who will eventually suffer?” he asked.

Diokno said that if inflation is estimated at about 5.5% for 2023, the proposed wage hike could drive it up to 6.9%.  —NB, GMA Integrated News