More pay, but ensure viability of businesses

**media[17321]**The House of Representatives has just passed a bill mandating a ₱200 daily wage increase for minimum wage private-sector workers. It’s a bold move which underscores that the Filipino worker deserves more. In an economy where inflation eats into every peso, and where the cost of living has risen far beyond stagnant wages, this proposed raise brings hope for Filipino workers.Amid the cheers, uncertainty is quietly brewing.For a minimum-wage worker, the extra ₱200 each day is approximately ₱4,800 a month. It’s no small amount. This is enough to put food on the table more regularly, to pay for medicines, and to send a child to school with dignity. It is, without question, a step toward economic justice. For too long, the Filipino labor force—one of the most resilient and hardworking in the world—has carried the burden of rising prices without a corresponding rise in income. This wage increase seeks to correct that imbalance, and morally, it is hard to argue against.However, it would be dangerously naïve to focus solely on the side of the labor force.Businesses—especially micro small and medium enterprises (MSMEs)—are still reeling from the economic trauma of the Covid-19 pandemic. Some are barely breaking even. Others are operating at reduced capacity, juggling high electricity rates, supply chain disruptions, and increasing regulatory costs. For a company with 250 employees, this bill translates to approximately ₱1.2 million more in monthly wage obligations. Multiply that across thousands of firms nationwide, and the macroeconomic ripple becomes a potential economic tsunami.One may look at it as a case of corporate greed resisting progress. But keep in mind, many of these companies are lifelines themselves. They employ millions of Filipinos who would lose everything—not just a ₱200 raise, but their entire livelihood—if their employers would retrench more workers or, at worst, may close shop under this new financial strain. Without a balanced approach, the very intention of the wage hike—to alleviate poverty—could inadvertently cause more harm. This would be a tragic irony—workers getting a higher wage, but losing their jobs for failure of their employers to sustain their business operations.With the Philippines struggling with a high unemployment rate, any measure that threatens job security must be carefully examined.So where do we go from here?First, the conversation must evolve beyond legislation and into implementation support. If the government is to mandate a wage increase of this scale, then it must also offer cushioning mechanisms—such as tax incentives, subsidies for struggling MSMEs, and access to low-interest loans. This would ensure businesses can absorb the shock and still thrive. This bill cannot stand alone. It must be part of a broader economic strategy.Second, a phased implementation could give businesses room to adjust. A staggered wage hike over 12 to 18 months would prevent sudden financial hemorrhaging while still delivering meaningful relief to workers.Finally, dialogue must continue. The business sector, labor groups, and the government must come together not as adversaries, but as co-stewards of economic growth. We cannot pit employers and employees against each other; we must create conditions where both can thrive.This bill is, at its core, a recognition of the Filipino worker’s worth. But its success will depend not on the nobility of its intent, but on the wisdom of its execution.Let us not allow this promise of upliftment to become a pyrrhic victory—one where we win the battle for higher wages, but lose the war for sustainable employment. We must build an economy where dignity for workers and viability for businesses are not at odds, but a joint step toward shared prosperity.