House fast-tracks deliberations on proposed P200 daily wage hike

National

HOUSE Speaker Martin Romualdez has committed to fast-tracking discussions on a proposed P200 increase in the daily minimum wage to provide economic relief for workers while ensuring the viability of businesses, particularly small and medium enterprises.

His statement came after a meeting with labor leaders, including Deputy Speaker Democrito Mendoza and Assistant Majority Leader Jude Acidre, who sought input on a legislated wage hike.

Romualdez highlighted the importance of the wage hike to address inflation and the increasing cost of essential goods.

He pointed out that the last legislated wage increase was made over three decades ago under the Wage Rationalization Act of 1989, emphasizing that with proper planning, such a measure could be implemented successfully again.

Romualdez stated that this is a critical step toward achieving inclusive growth and addressing the immediate challenges faced by Filipino families, stressing the urgency of the wage adjustment in light of inflation, which rose to 2.9% in December 2024.

He also underscored the positive economic effects of the increase, including enhanced consumer spending and long-term growth. Romualdez framed the wage hike as an investment in the country’s future.

However, the proposal faced opposition from employer groups.

Employers Confederation of the Philippines (ECOP) President Sergio Ortiz-Luis warned that a legislated wage hike would lead to inflationary pressures and could discourage investment, especially in the informal sector, which is not covered by such increases.

Meanwhile, labor groups like the Makabayan bloc welcomed the proposal but called for a larger increase.

They continued to push for a P750 across-the-board hike to meet the real cost of living.

Labor leaders also highlighted the dire economic situation faced by workers, citing rising costs of oil, rice, power, and fares.

Despite the opposition, Romualdez pledged to prioritize the bill, aiming to balance workers' needs with economic sustainability.(CMM)