Measure to benefit 5 million minimum wage earners, but biz groups wary

In a historic move, the House of Representatives approved on third and final reading its version of the wage hike bill that calls for a P200 daily wage increase across the board for minimum wage earners.

House Bill (HB) No. 11376 or the proposed Wage Hike for Minimum Wage Workers Act with 172 yes votes, zero no vote and one abstention.

The House-approved legislated wage hike is double the P100 version approved by the Senate.

Rep. Raymond Democrito Mendoza of the Trade Union Congress of the Philippines said the mandated wage hike “has the power to lift over 5 million minimum wage earners and their families.”

“We are way past the stage of whether we will pass a legislated wage hike, but how much that wage hike will be. For us workers, of course, the answer is clear: the higher, the better,” he said.

Mendoza called on President Ferdinand Marcos Jr. to sign the measure into law: “Let your presidency be forever remembered as the administration that finally had the vision, the courage and the will to break the chains of stagnant starvation poverty wages and deliver real hope to our nation’s workers.”

A leading business organization, however, raised concerns over the House-approved legislated wage hike, warning the measure could trigger higher inflation and undermine its intended benefits for workers.

“If this passes, it’s for sure going to cause added inflation,” said a representative from one of the country’s most influential business groups who asked not to be named.

“Demand will go up, but supply will remain the same. Sellers will raise prices, so effectively, the value of the raise may eventually be cancelled out,” the business leader added.

The business sector has long pushed for productivity-linked wage adjustments instead of across-the-board increases, arguing that mandated hikes could lead to higher operating costs for employers, especially for small and medium enterprises.

House Assistant Minority Leader Arlene Brosas said the increase – which she said was the first in 36 years – was a long-deserved benefit for workers.

“Now is the time to finally break the long years of legislative inaction. While the P200 wage hike is not enough to reach the living wage, this is a significant step in pushing the issue of labor in Congress,” Brosas said.

The IBON Foundation think tank earlier estimated that a family of five in Metro Manila, which has the highest minimum wage at P645, needs at least P1,221 per day in living wage.

The Bangsamoro Autonomous Region in Muslim Mindanao, on the other, has a minimum wage of only P361.

Cavite Rep. Jolo Revilla, also an author of the measure, said other measures that will alleviate the plight of the workers will follow the proposed legislated wage hike.

“This is just the beginning of uplifting the lives of our people,” Revilla said.

The House version of the bill provides that Regional Tripartite Wages and Productivity Boards can still implement wage increases even if HB 11376 is enacted.

“Upon the effectivity of this Act, the daily rate of all minimum wage workers in the private sector, regardless of employment status, including those in contractual and sub-contractual arrangements, whether agricultural or nonagricultural, shall be increased by two hundred pesos (P200) per day,” Section 3 of the proposed measure said.

The bill emphasized the wage hike must not lead to the reduction of existing allowances and benefits, adding that not adhering to the regulations will result in a penalty ranging from P100,000 to P500,000, and imprisonment of responsible officers.

Labor group Kilusang Mayo Uno warned that failure to pass the measure into law would expose the “anti-worker” position of the government.

The Partido Manggagawa also expressed concern there may not be enough time for a bicameral conference committee to reconcile the House and Senate versions of the bill, but said political will on the side of Congress and the Palace can make this happen.

Editor’s Note: This is an updated article. Originally posted with the headline “House OKs proposed P200 minimum wage hike.”