Several business groups rejected the proposed wage increase

The Philippine Chamber of Commerce and Industry (PCCI) and other business organizations have spoken out against a proposed legislated wage hike, arguing that it would not effectively address economic inequality in the country. According to them, such a measure would only benefit a small percentage of workers while putting a much larger segment of the workforce at a disadvantage, particularly those in the informal sector.

The groups highlighted the significant presence of the informal sector in the workforce, which includes various types of workers such as agricultural workers, home-based workers, street vendors, and drivers, among others. They emphasized that implementing a wage increase without considering its impact on this sector could exacerbate poverty and income inequality.

Instead of focusing solely on wage increases, the business groups called for the development of comprehensive initiatives aimed at creating a more favorable business environment. This includes investments in education, skills development, infrastructure, and the implementation of legislation to address underlying issues such as low productivity and excessive regulations.

The groups warned that imposing a significant wage hike without thorough consideration of its economic impacts could place a heavy burden on businesses, particularly micro and small enterprises that are still recovering from the effects of the COVID-19 pandemic.

The joint statement was signed by several prominent business organizations in the Philippines, including the Philippine Exporters Confederation, Employers Confederation of the Philippines, and Philippine Retailers Association, among others.

The statement comes as Senate Bill 2534, which proposes a P100 minimum wage increase for private sector workers, was approved on second reading. If passed into law, it would be the first nationwide legislated pay increase since 1989 and is expected to benefit over 4.2 million minimum wage workers in private businesses across the country.

Business News: Several business groups rejected the proposed wage increase