Proposed P200 wage hike welcomed but stokes fears of layoffs

ILOILO City – The proposed P200 increase in the daily minimum wage for private sector workers has drawn mixed reactions from laborers and employees in Iloilo, with many welcoming the move as long-overdue relief amid economic hardship, while others fear it could lead to job cuts and business strain.

On June 4, the House of Representatives approved on third and final reading House Bill No. 11376, which seeks to mandate a nationwide P200 daily wage increase for minimum wage earners in the private sector. The bill was passed with overwhelming support — 172 affirmative votes, no objections, and one abstention.

For many workers in Iloilo, the proposal brings a glimmer of hope amid soaring prices and limited income.

“It’s okay if they increase it because our basic needs are getting more and more expensive. The additional amount could help us buy things for our children or nieces and nephews. It would also help us cover electricity, water, and other daily expenses,” said Romerico Azuelo in Hiligaynon. He is a construction worker in Mandurriao district here earning P550 a day.

“Our basic needs are getting more and more expensive,” says Romerico Azuelo, construction worker in Mandurriao, Iloilo City.

Other workers shared similar sentiments, saying the wage hike could ease the financial burden they face daily.

“It would be good. It would really help our families,” said Kimberly, a barista from a small coffee chain.

“It would be good. It would really help our families,” says Kimberly, a barista from a small coffee chain.

“That would be even better,” echoed a traffic aide earning P450 a day.

“Will that really push through? Maybe it won’t. But if it does, we have no problem with that,” said a gasoline boy who earns the minimum wage of P551 daily.

Despite broad optimism, some workers remain uncertain about the bill’s chances of becoming law, as it still awaits approval from the executive branch.

“It’s still under discussion in Congress and not yet signed by President Bongbong Marcos. But that’s what people have been hoping for — a little help. The P200 is already a big deal, especially for laborers like me,” said Angelo Panes, a merchandiser in the City Proper.

Another worker, Renato Cerbolles, branch supervisor of a fashion store, sees the potential wage increase as life-changing: “The P200 hike is a big help for our daily needs — fare, everything. That’s where our everyday needs depend on.”

“A wage increase would be a big help. That’s where our everyday needs depend on,” says Renato Cerbolles, branch supervisor of a fashion store.

However, not all feedback was positive. Concerns about the ripple effect of wage increases on employment and business sustainability also surfaced.

“I doubt it will be approved. I think it depends on the company, but I feel like it would be difficult to implement. If the rate becomes that high, they might cut staff. There will definitely be layoffs,” warned Rena Joy Capillo, an area supervisor of a clothing store in a known mall.

“I’m happy. The P200 is a big increase to the minimum wage. But there are also disadvantages, especially for those working under agencies and are not regular employees. They might reduce the number of their people. In our workplace, we currently have six employees, but if the increase pushes through, we might end up with just four,” she added.

J-Annie Lucas, a financial advisor, pointed out the broader economic implications: “The wage hike may improve the standard of living for workers and their families. But it could also lead to increased inflation due to rising labor costs, and that might slow down economic growth.”

If enacted, the bill would mark the first legislated nationwide wage increase since the passage of the Wage Rationalization Act in 1989. However, business groups such as the Philippine Chamber of Commerce and Industry have also cautioned that higher labor costs may translate to costlier goods and services — with the burden possibly shifting to consumers./PN

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