President Marcos Awaits Senate on P200 Wage Hike
Malacañang clarified that President Marcos has not yet endorsed or committed to signing the proposed P200 wage hike bill. He is currently waiting for the Senate to finish its deliberations and for a thorough review of the economic impact. This cautious approach highlights the government’s careful consideration of the bill’s effects on the national economy and local businesses.
Communications Undersecretary Claire Castro shared this update after the House of Representatives overwhelmingly approved House Bill No. 11376. The bill calls for a P200 increase in the daily minimum wage, marking the first legislated wage hike since 1989. Despite the House’s approval, the President’s stance remains open as the bill still requires Senate approval.
“Pag-aaralan pa po ito at nariyan pa po ang Senado. Hindi pa po natatapos sa Senado ang usapin na ‘yan,” Castro said, emphasizing that the discussions are ongoing.
Balancing Fairness and Practicality for Filipino Workers
Castro also stressed that President Marcos is committed to ensuring a fair and practical solution for Filipino workers. “Nais po ng Pangulo na maibigay ang nararapat at mas makakabuti sa manggagawang Pilipino,” she added. This reflects the administration’s intent to carefully weigh the benefits to workers against potential economic challenges.
The proposed P200 wage hike would override the current regional wage-setting system managed by tripartite wage boards. These boards traditionally set wages based on regional economic conditions. President Marcos raised concerns about this in January, citing the need to study how the bill would interact with existing wage boards.
“The thing is, we have a tripartite board that actually determines the increase in the wage. So, we still have to study it further to see how that will work together,” the President said earlier this year. He acknowledged the rising prices and inflation but remains cautious about the broader economic effects.
Economic Concerns and Stakeholder Perspectives
Labor groups have long advocated for a nationwide wage increase, arguing that regional boards are slow and wages remain below living standards across many areas. Conversely, employers have warned that a mandated wage hike might force smaller businesses to reduce their workforce or even close. Some sectors also fear that legislated wage hikes could worsen inflation.
Once the Senate passes its version of the bill, both legislative chambers will reconcile any differences before sending the final measure to the President for approval or veto.
In January, President Marcos acknowledged the government’s determination to resolve legal and economic issues related to the wage increase. “It’s certainly something that we have to think about to assist yung mga pangkaraniwan na tao,” he said.
He added, “Palagay ko naman there is a way to increase that, but we have to resolve the legal issues, we have to resolve the economic issues. So, it still deserves a great deal of study.”
Supporting Small Businesses While Raising Wages
The President also shared concerns about the impact of a wage hike on micro, small, and medium enterprises (MSMEs). “The [small business] employers are worried… ‘Pag tinaas yung minimum wage, mababawasan ang kanilang empleyado kasi ganoon pa rin yung pera nila. Hindi naman madadagdagan yung pera na pambayad nila ng suweldo,” he said.
“Iyong malalaking korporasyon, kaya nila ‘yan. Kahit anong increase ang ilagay niyo kaya nila ‘yan. Pero ‘yung maliliit, iyon ang inaalala ng mga iba,” Marcos added.
The administration’s careful approach aims to balance the needs of workers with the realities faced by small business owners, ensuring economic stability while addressing wage concerns.
For more news and updates on wage increase debates, visit Filipinokami.com.