MANILA — Minimum wage earners in the National Capital Region are expected to receive the approved wage hike by July 17, but the development drew mixed reactions from workers, employers, and labor groups.

Daily wage in the non-agriculture sector will be P645 while workers in the the agriculture sector, service/retail establishments with 15 workers or less, and manufacturing establishments with 10 workers or less should receive a minimum wage of P607.

For some minimum wage workers like Gilbert Libantino, the increase is something to be thankful for despite the amount being barely enough to cover a meal.

Libantino, a native of Bicol, decided to work in Metro Manila where minimum wage is set higher compared to their province.

“Tinitipid na lang po namin yong P600 para maka-survive. Yong ulam, bibili lang kami ng nasa P30-50… Sa aming construction, malaking tulong na rin po ‘yan sa amin,” Libantino said.

(We try to make do with the P600 to survive. For food, we buy meals worth P30-50... For us doing construction labor, this increase helps us a lot.)

Truck driver Cesario Vicada Jr. also thinks the P35 wage hike is not enough for workers with families to feed.

“Okay naman sana may dagdag. Sa mga binata kasya siguro sa kanil. Sa aming pamilyado, may mga anak hnid po sapat yun dahil mahal ang bilihin ngayon,” Vicada said.

(The increase is okay. For single people, it might be enough. For us with families and children, it's not sufficient because of the high prices.)

Some labor groups are still proposing a legislated wage hike of P150.

According to the Trade Union Congress of the Philippines, the increase should not only benefit minimum wage earners but also those in higher wage levels.

TUCP Secretary General Atty. Arnel Dolendo said this is to avoid wage distortion where the gap between the minimum wage and slightly higher employment levels becomes too small.

“Kailangan aangat din yung kaunti lang, bahagya lang umangat dapat umangat din kasi aabutan sila, madi-distort ang sahod natin. Hindi aabutan yung pinakamataas dyan kasi habang tumataas ang sahod, paliit ng paliit ang increase hanggang sa wala ng increase pagdating dun sa matataas na talaga. Hindi aabutin ang manager,” Dolendo said.

(They should also get an increase to avoid wage distortion. The highest earners won’t be affected as much because as wages go up, the increments become smaller until there’s no increase at the higher levels.)

Labor and Employment Secretary Bienvenido Laguesma said wage distortion must be resolved to prevent demoralization among workers.

“Mayroon din itong tinatawag na indirectly benefited, yung mga manggagawa na hindi naman kalayuan ang sweldo sa umiiral na minimum wage  at kinakailangan magkaroon ng adjustment…Sa mga may unyon, ag kanilang proseso, magkakaroon sila ng talakayan at kung hindi magkasundo dapat merong mag-a-arbitrate. Sa mga walang unyon,  pwedeng magsadya sa tanggapan ng DOLE at magkaroon ng usapan, kung hindi magkasundo pwedeng magresulta ito sa isang kaso na hahawakan ng NLRC,” Laguesma said.

(For workplaces with labor unions, there will be discussions and if no agreement is reached, an arbitrator will step in. Those with no labor unions, they can go to the DOLE office for discussions and if no agreement is reached, it could become a case handled by the NLRC.)

On the other hand, Employers Confederation of the Philippines argued that wage increases need to be balanced to avoid impacting small businesses.

ECOP President Sergio Ortiz-Luis Jr. said small and micro enterprises will bear the brunt of wage hikes and may cause inflation in goods and services.

“Maraming apektado riyan. Hindi na nila kaya…Dagdag tayo ng dagdag. Ang choices nung mga ‘yan, idadagdag namin sa presyo namin which is inflationary kung kaya ng merkado. Kung hindi naman kaya, magbabawas ng tao ‘yan… Kung wala, hindi nila magawa ‘yong dalawa na ‘yon, nagsasara na lang ang mga ‘yan,” Ortiz-Luis said.

(Many will be affected. They can’t afford it…If we keep increasing wages, businesses will either pass the cost to prices, which is inflationary if the market can bear it. If not, they will reduce their workforce... If neither option is viable, they may shut down.)