The Chinese Filipino Business Club Inc. (CFBCI) warned that a P200 daily wage increase for private sector workers could inflict more harm than help on the Philippine economy particularly for small businesses and their employees.
In a statement, CFBCI said the across-the-board pay raise could trigger job losses and inflation, especially among micro, small and medium enterprises (MSMEs) that operate on thin profit margins.
“These businesses form the backbone of the Philippine economy, yet they often operate with narrow margins. A significant wage hike like this will force many of them to either dismiss employees to stay afloat or pass the additional cost onto consumers, driving up the prices of basic goods and services.” the group said.
“Eventually, wage earners may find that their higher pay is offset by rising inflation and job insecurity,” it said.
Instead of a one-size-fits-all increase legislated by Congress, CFBCI advocated for the continued use of the Regional Tripartite Wages and Productivity Board, which includes representatives from labor, employers, and government. The board is in a better position to assess regional economic conditions and propose tailored wage policies.
The business group also asked the government to shift its focus from wage hikes to targeted cost-of-living interventions.
“As a business organization and a social welfare advocate, we strongly believe that the government can play a more proactive role in alleviating poverty without relying solely on wage hikes,” CFBCI said.
Among the proposals were expanding rice subsidy programs to offer rice at P20 per kilogram, rolling out more Kadiwa stores to bring affordable goods to communities, and providing transportation fare discounts, utility support and food vouchers.
“Employers, government, and community groups must work together to craft policies that address both economic survival and long-term prosperity,” CFBCI said.
A P200 wage hike may feel like progress, but we owe it to our workforce to offer smarter, more sustainable solutions,” it said.
