Micro enterprises may have a hard time coping with the P35 increase in the daily minimum wage in the National Capital Region and will have to lay off workers or close shop altogether according to the Employers Confederation of the Philippines (ECOP).
Sergio Ortiz-Luis, ECOP president of the said while the P35 approved by Regional Tripartite Wage Productivity Board (RTWPB) is much higher than the P15 to P20 the group had earlier anticipated, the amount was computed in consideration of inflation.
“We need to follow that (the increase). We will respect that. The problem is the micro enterprises, they are not members of our group but we are getting feedback they will have a hard time coping with minimum wage hike after all this is at least a P1,400 increase per employee on a monthly basis.The P40 increase last year was hard for them,” Ortiz-Luis said.
He, however, noted only 5 to 8 million will be covered by the increase out of the 52 million in the wage market.
The Philippine Chamber of Commerce and Industry (PCCI) considers the P35 increase as “more reasonable” for business.
PCCI Enunina Mangio lauded government for considering the input of the business community in evaluating the wage increase, “To the business sector this P35 per day salary increase is more reasonable compared to the earlier unofficial rumors of P100, P300 etc.,” said Mangio.
