Dole: P85 Metro Manila wage hike to benefit over 1.1M workers, minimal disruption

MANILA, Philippines — Labor Secretary Francisco Tolentino on Wednesday allayed fears the P85 daily wage increase in Metro Manila would spark “unintended consequences,” saying it will benefit more than it will disrupt the employment of workers. Tolentino said the overall impact of the wage increase—whose first tranche of P60 will take effect on Saturday while the balance will be implemented in January next year—“is much greater” since it will benefit over 1.1 million workers. “The disruptions are very minimal but the overall impact is greater. [A total of] 1.1 million (workers) will benefit immediately starting July 25. The disruptions are only about 12,000,” the Department of Labor and Employment (Dole) told the Kapihan sa Manila Hotel press forum, apparently referring to workers who will face dislocation. READ: Dole approves ‘historic’ P85 wage hike for NCR workers The Foundation for Economic Freedom has called for the suspension of the wage order, describing its issuance as “abrupt” and warning it could “trigger severe unintended consequences.” Tolentino said wage distortion is more worrisome, explaining that adjustment of salaries will be negotiated between the manager and the worker earning above the minimum wage. According to him, the wage increase seeks to provide immediate relief to real wage earners and boost their purchasing power. “Inflation is not only caused by the labor cost, but there are also many factors. What this wage hike would provide is the immediate cushion and impact on real wages and the purchasing power of the worker to provide for [their] family,” Tolentino said. He added that struggling employers can apply for the Adjustment Measures Program, which provides financial aid for micro, small and medium-sized enterprises, labor groups and displaced workers. /cb