WAGE INCREASE MAY CLOSE DOWN BUSINESSES; PUBLIC SCHOOL TEACHERS ALLOWANCE INCREASE

Some economists have countered fears that many businesses may close down if the P150 increase in the minimum wage is approved. Congressmen ask employers how much they can raise for minimum wage earners.

Businessmen responded that the legislated wage hike is not yet timely because they are still recovering from the impact of the pandemic. If the salary of their workers is increased, they will ask the government to give them a subsidy.

P150 legislated wage hike discussion (Photo courtesy of Mark Demayo, ABS-CBN News)

When the minimum wage is raised, some businesses may close and inflation may increase. But some economists opposed that, "there are no record of closures because of wage increases. I haven't seen anything because of the wage increases, inflation has increased, maybe there is barely," Economist Prof. Emmanuel Leyco.

The workers stated, "we will not ask for too much, because the P150 we are asking for, if it is added to the P610 will still not exceed to P1000," Phil. Trade and General Workers Organization Margarita Grafelado. 

"I'm sure we can't say that a catastrophe will happen when the salary increases," Prof. Benjamin Velas UP School of Labor and Industrial Relations said.

Next week, committee members are expected to vote on the proposed legislated wage hike and they will also determine how much it will be.

Meanwhile, the proposal to increase the allowance of public-school teachers in the country will soon become law. That is after the chamber and senate came to an agreement regarding the different provisions of senate bill no. 1964 and house bill no. 9682, then ratifies or affirms the Kabalikat sa Pagtuturo Act.

It will be sent to the President for his signature to become law. In this way, the teaching allowance that teachers will receive next year will be doubled to P10,000. That can be spent on teaching instruments and equipment.

Source: GMA News

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