My boss recently asked me to take a look at the more-than-40 people who report to me — if there are any redundancies and non-performers whom we would be forced to let go. This is kind of sad how the new ruling would impact on private companies.
Congress just approved a P200 daily wage hike for minimum wage workers. Ang sarap pakinggan, no? Like, finally, they did something for the little guy. But here’s the thing: good intentions don’t always lead to good results. This move might actually do more harm than help, especially to small businesses that are barely staying afloat.
Nobody’s denying that workers deserve higher pay. Prices keep going up, bills are piling up, and the current minimum wage often isn’t enough to cover both meals, and a ride home.
In Dumaguete alone, for example, the minimum is around ₱463 a day, if I am not mistaken, but studies show that a family needs about ₱1,500 on average daily just to live decently.
So yes, something has to be done about the wages. But this approach misses the mark.
Instead of letting Regional Wage Boards study what local businesses can actually afford, Congress went ahead, and approved a nationwide P200 increase in one go. No adjustments, no phased rollout, no filters. It’s like giving everyone the same shoe size, and expecting it to fit. Spoiler: it won’t.
Now imagine a carinderia or tailoring shop in the probinsya. These aren’t high-earning operations. Asking them to suddenly pay P4,000+ more per worker every month is like asking a tricycle to carry the load of a dump truck.
It’s just not going to happen. So what do these businesses do? They cut jobs, reduce hours, or close shop altogether.
And when businesses fold up, jobs disappear. That’s not lifting people out of poverty, that’s pushing them off a ledge.
Many workers could end up in the informal sector where there are no benefits, no health insurance, and no job security.
Others might just decide there’s no future here, and take their chances abroad, just like millions of Filipinos who have done before.
Then there’s the inflation problem. When you force businesses to pay more without improving productivity, they usually pass the cost on to customers. Prices go up. That ₱200 increase ends up buying less than it did before.
It’s like refilling a leaking bucket. It looks helpful at first, until you realize nothing is actually being refilled.
This kind of rushed policy also sends the wrong signal to investors. If business costs can be changed anytime by a vote in Congress, why risk setting up shop here?
Other Southeast Asian countries like Vietnam and Indonesia take a more careful approach. They look at inflation, business capacity, and long-term effects before making changes. Pinag-iisipan muna, hindi ginagamit pang porma-points. Here in the Philippines, lawmakers seem to mostly act first, then think later. Kung nag-iisip man, pansariling kapakanan naman ang inu-una.
If we truly want better wages, and more stable jobs, we need to fix the root problems. That means cutting red tape, improving roads and infrastructure, lowering electricity costs, and helping small businesses grow.
It also means giving workers better training so they are able to earn more through productivity, not just policy.
When we don’t fix the system, we’re just slapping band-aids on bullet holes.
Let’s admit it: this wage hike might score political points on the labor sector, but it risks hurting the very people it claims to help.
If lawmakers are serious about improving lives, they should focus less on headlines, and more on real solutions.
Higher wages should come from a stronger economy, not from shortcuts designed to look good during election season.
Carlos Romarate
Operations Manager
Cleverminds Digital Solutions Inc.