MCCI warns of repercussions in proposed P200 wage hike

The Mandaue Chamber of Commerce and Industry (MCCI) raised concerns over the proposed P200 across-the-board increase in the daily minimum wage for private sector workers.

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In a statement, MCCI President Mark Ynoc acknowledged the need to ensure proper compensation for employees. However, he also stressed that many businesses are still recovering from economic disruptions.

“While we strongly support fair compensation for workers, we also recognize the significant challenges that businesses continue to face in the current economic environment,” Ynoc said.

On Wednesday, June 4, the House of Representatives approved on third and final reading House Bill 11376, which seeks to mandate a P200 increase in the daily minimum wage nationwide. The measure passed with 171 votes in favor, none against, and one abstention.

The MCCI called for a balanced and evidence-based approach to wage policymaking, emphasizing that both worker welfare and business sustainability must be considered.

Ynoc said that minimum wage policies should be aligned with prevailing economic conditions while safeguarding both labor rights and enterprise viability.

He noted that MCCI supports a performanceand productivity-based compensation system, rather than a flat increase across all employee levels.

Instead of uniform adjustments, many businesses apply a “distortion formula” to prevent salary compression and fairly compensate longer-serving employees, Ynoc explained.