Rethink the ₱200 wage hike; help workers in sustainable ways

The P200 daily wage increase for private sector workers recently approved by the House of Representatives may be well-intentioned, but it risks repeating a cycle of short-term relief and long-term damage to the Philippine economy.

- By SAMUEL LEE UY

The Chinese Filipino Business Club, Inc. (CFBCI), one of the prominent organizations in the Chinese-Filipino community, argues that a P200 across-the-board increase will not only burden large corporations but will also spell harm to micro, small, and medium enterprises (MSMEs) the hardest.

These businesses form the backbone of the Philippine economy, yet they often operate with narrow margins. A significant wage hike like this will force many of them to either dismiss employees to stay afloat or pass the additional cost onto consumers, driving up the prices of basic goods and services. Eventually, wage earners may find that their higher pay is offset by rising inflation and job insecurity.