The Department of Labor and Employment (DOLE) has emphasized the need to consider the impact on micro, small, and medium enterprises (MSMEs) before finalizing the proposed P200 daily wage increase. This statement was made by DOLE Secretary Bienvenido Laguesma during a news forum in Quezon City. Laguesma highlighted that over 95% of the more than one million businesses in the Philippines are MSMEs, suggesting that any wage hike could significantly affect these entities.
While DOLE is not against the proposed wage increase, it is actively providing technical insights to assess its potential effects on employment and the broader economy. Laguesma mentioned that DOLE, along with the National Economic and Development Authority (NEDA) and the Department of Trade and Industry (DTI), is analyzing various scenarios to understand the implications on employment levels, inflation rates, and the gross domestic product.
According to the Philippine Statistics Authority, as of 2023, there are 1,246,373 business enterprises in the country, with MSMEs making up 99.63% of this total. Micro enterprises alone account for 90.43% of all establishments, followed by small enterprises at 8.82%, and medium enterprises at 0.38%. These MSMEs are crucial, generating 66.97% of the country’s total employment, with micro enterprises contributing the largest share at 33.95%.
Laguesma affirmed that should the wage hike bill become law, DOLE would comply with its implementation. He stressed that the responsibility to pass such legislation lies with Congress, and DOLE’s role is to enforce it.
President Ferdinand R. Marcos Jr. also expressed concerns about the proposed wage increase, calling for further study due to its potential impact on MSMEs. Meanwhile, the House Committee on Labor and Employment has approved a bill that mandates a P200 daily wage increase for all private sector workers, regardless of the size or industry of the business. The bill also prohibits employers from offsetting this increase with previous wage adjustments unless specified in collective bargaining agreements.