Neda: Around 40,000-140,000 workers may be affected by P35 wage hike
HUMMING ALONG Local factories have recorded an uptick in sales due to “solid” demand for Filipino products. —Photo from Facebook of the MEPZ Workers Association
MANILA, Philippines — The National Economic and Development Authority (Neda) on Tuesday said an estimated 40,000 to 140,000 workers may be negatively affected by the recent P35 minimum wage hike in Metro Manila.
READ: Wage hike of P35 for Metro Manila private sector workers approved – DOLE
According to Sec. Arsenio Balisacan, such an event may occur once smaller businesses — or micro, small, and medium enterprises (MSMEs) — end up closing or reducing their personnel to abide by the new minimum wage.
However, he also clarified that such projected figures are “negligible,” especially relative to the effects of higher rate adjustments.
“It could increase the unemployment rate but again, it’s a very negligible number; and it could impact something like 40,000 to 140,000, depending on the region but still again, not as big as one would expect if those were much higher,” Balisacan said.
When asked if the projected figure indicated the number of Filipinos losing their jobs, Balisacan explained that it wasn’t necessarily the case.
READ: DOLE: P35 pay hike not meant to insult workers
This, he explained, is because of the country’s growing economy, which would be able to provide alternative jobs for people who may be affected by the increased minimum wage.
“New jobs open up in the economy and our economy continues to grow at 6 to 7 percent this year so that we’ll be accompanied by quite a lot of jobs,” said Balisacan.
Meanwhile, Labor Secretary Bienvenido Laguesma assured that the Department of Labor and Employment (DOLE) continues to “closely monitor the possible impact of any wage adjustments.”
“Any transformation or anything that happens in the place of work will result in some impact whether positive or negative,” explained Laguesma.
It was in early June when the Regional Tripartite Wages and Productivity Board (RTWPB) wage board approved a P35 increase to the minimum wage hike for private workers in Metro Manila in early June.
The increase will bring the daily minimum wage in the region from P610 to P645 for the non-agriculture sector and from P573 to P608 for the agriculture sector, service and retail establishments employing 15 or fewer workers, and manufacturing establishments regularly employing less than 10 workers.
