P35 WAGE HIKE MAY AFFECT 40,000 TO 140,000 WORKERS ACCORDING TO NEDA

Around 40,000 to 140,000 workers in Metro Manila could be affected and lose their jobs when the P35 daily wage hike in the minimum wage of workers is implemented this month, according to National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan.

On June 27, the Wage Order No. NCR-25 was signed and will be effective on July 17 whereas from P610 the minimum wage in NCR will increase to P645 for the non-agriculture sector, while those in the agriculture, service or retail and manufacturing sectors will be P608. 

The Socioeconomic Planning Secretary stated that the increase in minimum wage may leave thousand individuals jobless (Photo courtesy of Philippine Star)

Balisacan said that, “we still have all the numbers but our estimates so far suggest that the national output GDP would be impacted negatively. But it’s a very small impact. It’s just one-tenth of about one-tenth of one percent.'' 

''It’s very negligible. It could increase the unemployment rate. But again, it’s a very negligible number and it could impact something like 40,000 to 140,000, depending on the region. But still again, not as big as one would expect if those rate adjustments were much higher,'' he added.

Although there are employers who are said to be unable to retain all their workers due to the new wage adjustment, there are said to be six 600,000 jobs that those affected can still choose.

“If you lose one job there, there are other jobs being opened up. During this period, there are 600,000 plus new employment. You know, these are new jobs opened up in the economy. As our economy continues to grow at 6 to 7 percent this year, that will be accompanied by quite a lot of jobs,” Balisacan pointed out.

Balisacan, on the other hand, is assured that this will not have any effect on the increase in the unemployment rate in the country which in May has already dropped to 4.1% compared to 4.3% in 2023. He is also confident that as long as the wage adjustments are not too high, investors will continue to come to the Philippines.

DOLE states that businesses who employ 10 or fewer people on a regular basis in retail and service sectors, as well as those impacted by natural or man-made disasters, can appeal to the RTWPB to be excused from the wage hike.

In accordance with Republic Act No. 9178, the increase will also not apply to Barangay Micro Business Enterprise.

Source: ABS-CBN News

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