MANILA, Philippines — Granting an across-the-board legislated wage increase for workers nationwide could have an adverse impact, the Department of Labor and Employment (DOLE) cautioned legislators anew.
A legislated wage hike could displace workers, increase prices of essential commodities and result in a decline in gross domestic product growth, Labor Secretary Bienvenido Laguesma said yesterday at the Kapihan sa Manila Bay forum.
Laguesma advised employers nationwide to be prepared to grant salary increases mandated by the different regional tripartite wages and productivity boards (RTWPB).
Only a few companies might comply with a legislated wage hike, considering that a majority of companies in the Philippines are micro, small and medium enterprises, he said.
There is a need to balance workers’ needs and employers’ capacity to grant salary increases, he stressed.
If workers need pay hikes, Laguesma said employers have the right to get reasonable returns from their investment and the opportunity to expand their business.
Various labor groups yesterday trooped to Congress to push for the passage of a “long overdue” and “much deserved” wage hike amid the soaring prices of commodities.
Wage hikes granted by RTWPBs are inadequate so Congress needs to pass pending measures granting legislated wage increases, the groups said.
Laguesma noted that RTWPBs will now undertake an annual review of existing minimum wage rates, hence employers must be ready to grant wage adjustments.
Unlike in other countries, the Philippines’ wage fixing system always has an upward trend adjustment, he noted.
The RTWPB in the National Capital Region will start the wage review by May 16, Laguesma said.
RTWPBs in 10 other regions will start the wage review between July and August, he added.
After the review, RTWPBs are expected to issue new wage orders, he noted.
Labor groups may still file a formal petition for a wage hike even if RTWPBs are set to conduct an automatic wage review, Laguesma said.
Nine of 17 RTWPBs nationwide have granted salary increases motu propio or without petition for a wage hike, he said.
Jobless
Meanwhile, DOLE maintained that the country’s employment situation is improving despite the number of jobless Filipinos in March.
The number of employed Filipinos rose to 96.1 percent in March from 95.3 percent in March 2023, Laguesma said.
The employment rate went down to 96.1 percent in March from 96.5 percent in February, he admitted.
“But in terms of absolute number, the number of employed increased,” he claimed.
The high number of new entrants to the labor force led to the increase in unemployment numbers, he said.
There are 407,000 new entrants to the labor force and of that number, about 200,000 found employment and around 200,000 were unemployed, he added.
The number of underemployed went down, which means that more quality employment is being provided to Filipinos, he noted.