The Philippine Chamber of Commerce and Industry (PCCI) has expressed concerns over a proposal in the House of Representatives that seeks to implement a ?200 across-the-board wage increase for minimum wage earners, warning that it could negatively impact many businesses.
As the country’s largest business organization, PCCI argues that wage adjustments should be determined by the Regional Wage Boards (RWB), rather than through national legislation.
The House of Representatives recently approved the proposed wage hike. To become law, the measure must also pass the Senate and be submitted to Malacañang, where the President will either sign it, allow it to lapse into law, or veto it.
“We view the legislation of a minimum wage hike with great concern,” said PCCI president Enunina Mangio. “A blanket national minimum wage increase does not account for regional differences in the cost of living, nor the unique needs of businesses depending on their specific industry, location, and type of labor required.”
Mangio pointed out that living expenses vary by region, with cities facing higher costs than rural areas. This is why tripartite Regional Wage Boards make wage decisions based on the cost of living in each region, she explained.
According to PCCI, the proposed wage increase could impose a heavy financial burden on micro, small, and medium enterprises (MSMEs), forcing them to adjust payroll expenses while grappling with rising costs of goods and services.
“MSMEs are already operating on tight margins. This mandated wage hike will force these small enterprises to shoulder higher payroll expenses,” Mangio said.
She also warned that businesses may pass on the additional costs to consumers, resulting in price increases. Some companies might even be forced to reduce their workforce to cope with the higher expenses.
Mangio also cautioned that the proposal could drive micro-enterprises into the informal sector as a way to cut costs, undermining government efforts to promote formal business operations.
Rather than pursuing a blanket wage increase, Mangio urged policymakers to adopt a more balanced approach that takes into account both the needs of workers and the long-term sustainability of businesses.
“For wage policy to be effective, it should prioritize economic growth and stability, business productivity, secure and quality jobs, and real purchasing power for workers,” she said.
Source: https://bilyonaryo.com/2025/02/04/pcci-president-p200-nationwide-wage-hike-could-lead-to-job-losses-price-increases/headlines/
By Eileen Mencias

PCCI president: P200 nationwide wage hike could lead to job losses, price increases