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| Press Release by Philippine Chamber of Commerce and Industy |
Manila, Philippines—The Philippine Chamber of Commerce and Industry (PCCI) expressed strong concerns on June 5, 2025, regarding the legislated P200.00 minimum wage hike. In a press release, the PCCI outlined its opposition on two main fronts, highlighting potential adverse effects on the economy, particularly for micro and small enterprises (MSEs).
The PCCI argued that the unilateral wage hike was done without due consideration for its impact on the wider economy. This includes potential effects on the price of goods and services, the informal sector which employs a significant portion of the population (approximately 50-60%), and MSEs that constitute 96% of the country's total number of enterprises. The chamber believes this increase will inevitably lead to higher labor costs, consequently resulting in higher costs of goods and services, and ultimately, inflation.
The business group also pointed out that the benefits of the wage hike might largely be confined to workers in the formal sector. Meanwhile, the inflationary pressure it could generate might erode purchasing power, negating the intended benefit, particularly for those in the informal sector who are not bound by the minimum wage law. Furthermore, the PCCI warned that increased operational expenses could lead to the closure of smaller enterprises, thereby reducing the number of jobs available in the formal sector.
Secondly, the PCCI views the unilateral wage hike as a precedent that undermines the established role of the Regional Wages and Productivity Board (RWPB). The RWPB was created to determine and set region-specific wages based on the local cost of living and the unique needs of businesses within specific industries and locations. The PCCI asserted that legislating a single wage for all areas could harm businesses in lower-cost regions and diminish the flexibility of the RWBs to set wages that align with the specific situation in their respective areas.
The PCCI conveyed its hope that the bicameral conference committee would carefully consider the position of the business sector. It called for the adoption of a comprehensive approach that balances the needs of workers with the capacity of businesses, particularly ensuring that MSEs can continue to thrive while still providing fair wages.
References:
Philippine Chamber of Commerce and Industry (PCCI) Press Release: "Statement on the Legislated P200.00 Minimum Wage Hike." June 5, 2025.
