ILOILO City – Small and medium enterprises (SMEs) across Iloilo warned of potential layoffs and shutdowns if the proposed P200 across-the-board daily minimum wage hike for private sector workers is approved. They cite the prevailing rising costs and sluggish sales.
Entrepreneur JK who runs a bar near the Iloilo Provincial Capitol and another in Mandurriao district said the proposed increase could force him to shut down or lay off staff.
“It’s really heavy,” he said. “Even if I only have a few employees, the additional P200 will significantly reduce our profits. Sales are only strong on Fridays and Saturdays. On other days, it’s really slow.”
While some small entrepreneurs support the spirit behind the proposal, they also caution that the blanket wage hike could devastate their ability to stay afloat.
Trex, who operates multiple cellphone stalls at Marymart Center, said, “I’m in favor of the P200 increase. It will really help employees and their families cope with daily expenses, especially now that prices of basic goods keep rising.”
Industry groups, however, are urging lawmakers to take a more calibrated approach. Prince Juliene Hermaine Celo, director of the Philippine Chamber of Commerce and Industry (PCCI) in Iloilo, warned that a national wage hike could result in widespread inflation, suppress consumer spending, and hurt both formal and informal workers.
“We express our concern over Congress’ move to pass a unilateral P200 wage hike,” he said. “This would have undesirable impacts in three key areas: first, it will drive up prices of goods; second, it could worsen conditions for informal workers — street vendors, jeepney drivers, sari-sari store owners, construction workers, who make up around 60% of the population; and third, it will burden our MSMEs.”
Celo emphasized that the Regional Tripartite Wages and Productivity Boards (RTWPBs) are better positioned to determine wage adjustments based on localized economic realities.
“We’re not opposed to wage increases,” he clarified, “but we urge Congress to adopt a more comprehensive and region-sensitive approach.”
The Iloilo Hotels, Restaurants, and Resorts Association (IHRRA) echoed similar concerns.
“Most of our members are small businesses,” said IHRRA President Happy Abiner. “Our goal is to provide jobs and good service, but this P200 daily increase per person would spike our operating expenses. It would also trigger a chain reaction — increased prices, increased service charges. It’s too much to carry.”
The House of Representatives has already approved the measure, but it still awaits Senate concurrence. In the meantime, Iloilo’s SMEs are left waiting anxiously — caught between the need for wage fairness and the fear of financial collapse./PN
