The Department of Labor and Employment (DOLE) said on Wednesday that the proposed P100 wage increase for employees working in the private sector might possibly lead to wage distortion.

According to Labor Secretary Bienvenido Laguesma, the P100 salary hike might put pressure on business owners, saying that more than 8 million laborers could indirectly benefit from the wage increase.

He noted that the chain reaction of the wage increase might reach the managerial level, adding that inflation is an indirect effect of any minimum wage increase.

Moreover, Representative Joel Chua, who is also a member of the House of Representatives committee on economic affairs, gave a warning that inflation might occur when the P100 salary increase is implemented, causing layoffs or the closing of companies.