Proposed P100 pay hike for private workers reaches

Senate plenary.
By Wilnard Bacelonia
February 7, 2024, 6:37 pm

MANILA – A bill seeking a PHP100 increase in the daily minimum wage of workers in the private
sector nationwide reached the Senate plenary with Committee on Labor, Employment and
Human Resources Development chair Jinggoy Estrada pushing for its passage.

Estrada said an estimated 4.2 million minimum wage earners in the private sector would
benefit from Senate Bill (SB) 2534.

"Under this measure, all employees in the private sector in the entire country, whether
agricultural or non-agricultural, are entitled to (a) PHP100 minimum wage increase," Estrada
said in his sponsorship speech.

SB 2534, he said, augments the wage increases already issued by the regional wage boards.
"Thus, after consideration of the existing socio-economic conditions and positions of various
sectors, it is incumbent upon us to propose a daily pay hike to help alleviate the burden of
Filipinos in the face of soaring prices of basic commodities and rising cost of living," he added.

Estrada also pointed out that if passed into law, the measure would also result in increased
purchasing power among consumers and would stimulate economic activity, thereby
contributing to national growth.

"This wage hike bill would also help attain our goal of reducing poverty incidence rate in the
coming years to have a prosperous, predominantly middle-class society where no one is poor
by 2040," he said.

He said under the Philippine Development Plan, the government is targeting to reduce the
poverty incidence rate to 13.2 percent by 2025 and to 9 percent by 2028.

SB 2534 is a consolidation of SB 2002 filed by Senate President Zubiri, with Senate Pro Tempore
Loren Legarda and Senators Nancy Binay, and Christopher Lawrence Go as co-authors, and SB
2018 by Senator Ramon Revilla Jr. (PNA)

REFERENCE: Wilnard Bacelonia, February 7, 2024, PHILIPPINE NEWS AGENCY

Summary/Highlights:
The Senate plenary is considering a bill, SB 2534, which proposes a PHP100 increase in the daily
minimum wage for private sector workers across the country. This initiative, championed by
Jinggoy Estrada, aims to alleviate financial strain for approximately 4.2 million minimum wage
earners amidst escalating living costs. It is argued that the wage hike would not only bolster
purchasing power but also stimulate economic activity, aligning with national development
goals to reduce poverty incidence rates by 2025 and 2028.

Implications:
Positively, the proposed wage increase could uplift household incomes, mitigate poverty, and
enhance living standards. By empowering workers with higher wages, there's potential to
amplify consumer spending, thereby fortifying demand and aiding businesses, particularly
through increased sales. Moreover, elevated wages might foster a more content and productive
workforce, curbing turnover rates and bolstering long-term economic prosperity. However,
there are potential negative ramifications, including possible job losses or reduced working
hours as businesses navigate heightened labor expenses. Small and medium-sized enterprises
(SMEs), in particular, might face challenges absorbing these costs, potentially hindering their
competitiveness and expansion. Additionally, if businesses transfer increased labor costs to
consumers via price hikes, it could trigger inflation, diluting the purchasing power of households
not directly benefiting from the wage increase.