ILOILO City – The newly approved P37 to P45 daily wage increase in Western Visayas is expected to drive product prices higher as businesses brace for steeper operating costs, the Philippine Chamber of Commerce and Industry (PCCI) Iloilo warned.
Felix Tiu, PCCI Iloilo chair and a major employer in the region, said the wage order — set to take effect on Nov. 19 — will heavily strain companies, especially those with large workforces.
“Syempre here in Western Visayas, we should study the impact of that wage hike because it will be a big blow to our expenditures,” Tiu said, noting that even firms already paying above minimum wage will feel the shock.
“Approved na siya sa national so it’s a big blow for us because kun may ara ka abi 1,000 employees, 37 pesos increase? That’s 37,000 per day, you multiply it to 30 days… that’s an estimated 10 million pesos,” said Tiu.
He warned that companies may be left with limited survival strategies.
“The impact of that, ang affected sina is still ang community. Because we will also patong the cost sa amon nga goods. Because if we will not survive, we will close our business,” he said, stressing that price adjustments may be unavoidable. He added that while some may resort to streamlining, their group avoids retrenchment.
“That is also one way, streamline. But in our case sa EON Group, wala kami naga-retrench. We only expand our business so that we cannot retrench people. We are trying to make our business grow para maka-create kami more job opportunities,” he said.
Under the wage order approved by the Regional Tripartite Wages and Productivity Board, non-agriculture workers in establishments with more than 10 employees will now receive P550 (from P513), while smaller establishments must raise pay from P485 to P530.
Agricultural workers’ pay will increase to P520 daily, while domestic workers get a P500 monthly hike.
Labor groups slammed the increase as “insulting,” insisting that the adjustment “cannot even purchase a kilogram of rice.” They continue to push for a P200 across-the-board hike.
Atty. Sixto Rodriguez Jr., Department to Labor an d Employment regional director and Regional Tripartite Wages and Productivity Board chair, said the increase is pending review by the National Wages and Productivity Commission, stressing that wage-setting must balance workers’ welfare with business viability.
As Western Visayas gears up for implementation, both employers and workers brace for the ripple effects — higher prices, tighter margins, and intensifying calls for a living wage./PN