The ₱350 increase in Filipino workers' daily minimum wage will only have minimal effects on the profits of businesses, according to Ibon Foundation Inc. Executive Director Sonny Africa on Tuesday, February 27.
In an interview, Africa told DZRH that their computation showed that ₱350 across-the-board hike will reduce 25 percent of the big corporations' profits and 26 percent from the micro, small, and medium-sized enterprises' revenues.
"Mas maliit ang bawas sa mga large enterprises kesa sa MSMEs," he said.
Sonny Africa, Ibon Foundation Executive Director sa P150 to P350 wage hike: Sa aming huling computation, sa pangkalahatan 25% lamang bawas sa tubo ng mga kumpanya 'yan. #MagandangUmagaPilipinas #SamaSamaTayoPilipino
— DZRH NEWS (@dzrhnews) February 26, 2024
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Last week, the Senate approved on the third and final reading the measure seeking a ₱100 across-the-board minimum wage increase for private sector workers.
Meanwhile, House Majority Leader Manuel Jose Dalipe recently bared that they are eyeing a ₱350 increase for all employees working in the private sector
Africa debunked claims that a wage increase is inflationary or causing goods and services to balloon.
"Hindi nga po eh. Ayun ang gusto namin pabulahanan, kung tanggapin ng mga negosyante ang bawas sa tubo at huwag ipasa sa konsyumers ay hindi tataas ang presyo ng bilihin. Ang sinasabi nila palagi ngayon, parang nananakot eh, kapag nagtaas ng sahod, parang napaka-laki nung pinsala sa kanilang tubo," he stated.
Citing the Philippine Statistics Authority survey results, the economic think tank said companies only spend 11 percent on employees' salaries and bonuses.
Africa underscored that the government seems to be responding to businessmens' plea more than employees.
"Nagtataka kami, sasabihin ng negosyante, 'nahihirapan kami', tatanggapin agad ng gobyerno. Pero sinasabi ng mga mangagawa, 'hirap kami sa mababang sahod', may konting lip service yung gobyerno pero hindi naman pinapakinggan," he said.
The IBON executive director pointed out that the present minimum wage is much smaller than the wage in 1989, and lower as compared to the minimum in Singapore, Brunei, Thailand, and Malaysia.
Moreover, Africa said he believes that increase in the minimum wage will not sway away foreign businessmen.
"Habang produtikibo ang manggagawawa, habang may tubo ang negosyante dito, at sa insentibong benipisyo ang gobyerno tulad ng pagbawas ng buwis sa mga malalaking negosyante, pupunta at pupunta ito," he added.
