DBM chief: Gov't can't afford wage subsidies

With its "limited fiscal space," the government is unlikely to find the resources to subsidize minimum wage earners, Budget Secretary Amenah Pangandaman said yesterday, as she warned that pushing through with such a subsidy would undermine consolidation efforts as well as the delivery of other social services.

- LOUISE MAUREEN SIMEON

"This is currently not in the budget approved by Congress," Pangandaman told The STAR, referring to the proposed subsidy for minimum wage earners.

"And it might eat up the budget for social services and other infrastructure priorities.

Thus, we really need to study the proposal," she said.

The House of Representatives Committee on labor and Employment is looking at state subsidies for minimum wage earners amid proposals to increase the salaries of private sector employees.

The business community, however, has voiced opposition to the legislated wage hike proposal, warning that it would result in job losses and layoffs if approved.

Under the 2024 budget, subsidies allotted are only for the usual social protection programs such as the Pantawid Pamilyang Pilipino Program and Assistance to Individuals in Crisis Situation.