PCCI: P100 wage hike to hurt SMES

The proposed P100 daily minimum wage increase for private sector workers may hurt small and medium enterprise (SMEs) in the country as it may lead to the reduction of their workforce or even closure, the Philippine Chamber of Commerce and Industry warned.

- CATHERINE TALAVERA

"The SMEs will be greatly hurt by this P100 wage increase," PCCI president Enunina Mangio told The STAR in a Viber message.

"A lot of them cannot afford it which might endanger closure if not reduction of workforce," she said.

Small enterprises are establishments with a total workforce of 10 to 99, while medium enterprises employ 100 to 199 workers, according to the Philippine Statistics Authority.

In the long run, Mangio said the wage increase would lead to higher inflation.

"The effect of wage increase is (an) increase in inflation which will affect everybody," she said.

"Not to mention that 84 percent (of workers are) not covered by minimum wage because they have no employers. These are the farmers, fisherfolks, tricycle drivers, jeep/ bus drivers, vendors, etc," she said.

On Wednesday, the Senate approved on second reading the bill seeking a P100 daily minimum wage increase for private sector workers.

Senate President Juan Miguel Zubiri said he expects the measure to hurdle third and final reading next week.

He also appealed to members of the House of Representatives to do their part and pass a counterpart measure.