LEGISLATED P100 WAGE HIKE, APPROVED ON FINAL READING

Senate approved on final reading of P100 wage hike (Photo courtesy of Manila Standard)

The Senate approved on third and final reading of the proposed P100 wage hike for private sector workers or minimum wage earners on February 20, 2024 (Tuesday), twenty senators voted in favor, with zero negative vote and no abstentions.

On Thursday, February 22, a Senator said that the Congress reduced business income taxes, companies with small-sized enterprises and medium-sized can absorb the P100 legislated wage increase.

Given that the living wage is already P1,100, that’s why one of the senators, Sen. Sherwin Gatchalian, voted in favor of the bill.

In the ABS-CBN News TeleRadyo Serbisyo interview, he stressed that “Kaya ako bumoto in favor, binabaan ito. Ang original proposal is P150 na medyo mabigat sa small and medium enterprises. Ang living wage ngayon ay P1,100. Ang ating minimum wage naglalaro sa P500 to P610 so kalahati lang kaya marami sa ating pamilya hirap.”

“Tiningnan din ng Senado ang kita ng SME kasama na ang malalaking enterprises pero dahil bumaba nga ‘yung corporate income tax sa CREATE Law…from 30% to 20% kaya lumaki ‘yung kanilang kita. Pumapalo ng around 12% yung kanilang gross profit dahil sa pagbaba ng income tax kaya sa aming computation dahil P100 lang ang idagdag, marami sa ating small and medium enterprises ay kaya nilang mag-absorb itong ganitong pagtaas ng (sahod),” he added.

Labor Secretary Bienvenido Laguesma said on ABS-CBN news, TeleRadyo Serbisyo, that the wage hike for minimum earners puts pressure on business owners to increase the wages of middle management.

A minimum wage increase might indirectly support 8 million workers, Laguesma said. Any minimum wage hike has an unanticipated effect, which is regulated by raising production.

Source: ABS-CBN News 

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