DOLE says P200 wage hike would hurt small businesses
MICRO, small and medium enterprises (MSMEs) should be taken into consideration before making a decision on the proposed P200 daily wage increase, the Department of Labor and Employment (DOLE) said on Saturday. "Whether it's doable or not doable, perhaps to put it in its proper context, out of the more than 1 million enterprises in the Philippines, more than 95 percent are micro, small enterprises," Labor Secretary Bienvenido Laguesma said in Filipino and English during the Saturday News Forum in Quezon City. Laguesma clarified that DOLE is not opposing the wage hike. Instead, it provides technical inputs to give an idea about the proposed wage hike's possible impact on employment and the economy. "We are providing scenarios with the help of the National Economic and Development Authority and the Department of Trade and Industry. What could be the impact of this amount in terms of the employment level, the inflation rate and... gross domestic product," he said. Data from the Philippine Statistics Authority showed that 1,246,373 business enterprises are operating in the country as of 2023. MSMEs comprise 99.63 percent or 1,241,733 of the total, while only 0.37 percent or 4,640 are large enterprises. Micro enterprises constitute 90.43 percent or 1,127,058 of total establishments, followed by small enterprises at 8.82 percent or 109,912, and medium enterprises at 0.38 percent or 4,763. SMEs generated a total of 6,351,466 jobs or 66.97 percent of the country's total employment, with micro enterprises producing the biggest share (33.95 percent), closely followed by small enterprises (26.26 percent) and medium enterprises (6.77 percent). Laguesma said the DOLE, as the implementing agency, would comply if the wage hike bill became law. "Congress is the one that has the mandate or responsibility to pass or propose laws. If there is a law, we will implement it," Laguesma said. In an interview Friday, President Ferdinand Marcos Jr. said the proposed wage hike needs further study, citing concern over its possible impact on MSMEs. The House Committee on Labor and Employment on Thursday approved a substitute bill mandating a P200 daily across-the-board wage increase for private sector workers. Under the bill, all private businesses, regardless of size and industry, are mandated to implement a P200 daily pay hike upon enactment. It prohibits employers from offsetting the increase with previous wage adjustments unless explicitly anticipated under collective bargaining agreements.
Tomas Kauer - Moderator 
MICRO, small and medium enterprises (MSMEs) should be taken into consideration before making a decision on the proposed P200 daily wage increase, the Department of Labor and Employment (DOLE) said on Saturday.
"Whether it's doable or not doable, perhaps to put it in its proper context, out of the more than 1 million enterprises in the Philippines, more than 95 percent are micro, small enterprises," Labor Secretary Bienvenido Laguesma said in Filipino and English during the Saturday News Forum in Quezon City.
Laguesma clarified that DOLE is not opposing the wage hike. Instead, it provides technical inputs to give an idea about the proposed wage hike's possible impact on employment and the economy.
"We are providing scenarios with the help of the National Economic and Development Authority and the Department of Trade and Industry. What could be the impact of this amount in terms of the employment level, the inflation rate and... gross domestic product," he said.
Data from the Philippine Statistics Authority showed that 1,246,373 business enterprises are operating in the country as of 2023.
MSMEs comprise 99.63 percent or 1,241,733 of the total, while only 0.37 percent or 4,640 are large enterprises.
Micro enterprises constitute 90.43 percent or 1,127,058 of total establishments, followed by small enterprises at 8.82 percent or 109,912, and medium enterprises at 0.38 percent or 4,763.
SMEs generated a total of 6,351,466 jobs or 66.97 percent of the country's total employment, with micro enterprises producing the biggest share (33.95 percent), closely followed by small enterprises (26.26 percent) and medium enterprises (6.77 percent).
Laguesma said the DOLE, as the implementing agency, would comply if the wage hike bill became law.
"Congress is the one that has the mandate or responsibility to pass or propose laws. If there is a law, we will implement it," Laguesma said.
In an interview Friday, President Ferdinand Marcos Jr. said the proposed wage hike needs further study, citing concern over its possible impact on MSMEs.
The House Committee on Labor and Employment on Thursday approved a substitute bill mandating a P200 daily across-the-board wage increase for private sector workers.
Under the bill, all private businesses, regardless of size and industry, are mandated to implement a P200 daily pay hike upon enactment.
It prohibits employers from offsetting the increase with previous wage adjustments unless explicitly anticipated under collective bargaining agreements.
