The PHP35 increase in the daily minimum wage of workers in the National Capital Region (NCR) would neither constrain the Philippine economy nor greatly affect employment numbers, the National Economic Development Authority (NEDA) said Tuesday.
In a Palace press briefing, NEDA Secretary Arsenio Balisacan said the approved PHP35 wage hike in Metro Manila will adversely affect around 40,000 to 140,000 workers.
“Our estimates so far suggest that the national output GDP (gross domestic product) would be impacted negatively, but it’s a very small impact – it’s just one-tenth of … about one-tenth of 1 percent. It’s very negligible,” Balisacan said.
“It could increase unemployment rate but again, it’s 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 rates adjustment, rate adjustments were much higher,” he added.
Meanwhile, Labor Secretary Bienvenido Laguesma clarified that the wage hike is directed toward minimum wage earners or those in the entry-level positions to protect workers from undue low pay and help tide them over the inflation.
"Over and above the minimum wage that can be subjected to further discussion and negotiation between the employer and the worker for companies that do not have organized unions," Laguesma said.
The Regional Tripartite Wages and Productivity Board - National Capital Region earlier approved a PHP35 hike in the daily minimum wage rate in Metro Manila, which takes effect July 17.
The daily minimum pay for non-agriculture workers will increase to PHP645 from the current PHP610.
On the other hand, the daily minimum wage for workers in agriculture, service/retail establishments employing 15 workers or less, and manufacturing establishments regularly employing less than 10 workers, will be raised to PHP608 from the current PHP573.
Unemployment dip
In the same briefing, Balisacan attributed the decline in the unemployment rate in the country to the measures undertaken by the administration of President Ferdinand Marcos Jr. to create more quality jobs for Filipinos.
Unemployment rate in the country fell from 4.3 percent in May 2023 to 4.1 percent in the same month this year, according to the May 2024 Labor Force Survey released by the Philippine Statistics Authority.
“If you look at the numbers, the total additional employment created by our economy was something like 605,000 workers added in the pool of employed people,” Balisacan said.
Balisacan said the jobs mentioned are those that require middle skilled workers.
“The indicators of the quality of jobs also are encouraging,” Balisacan said. “The underemployment rate dropped from 11.7 to 9.9 percent which is one of the lowest in many years, so that’s very encouraging.”
The NEDA chief also recognized the increases in the wage and salary of workers, which according to him, is a good indicator of the quality of work.
The increase in the country’s total employment for May is driven by the expansion in industry and services, the implementation of the infrastructure flagship projects and the Pambansang Pabahay Para sa Pilipino Housing program of the Marcos administration. (PNA)
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