Gradual wage hike and workforce upskilling debated in the Philippines
The proposed P100 (US$1.79) wage increase has garnered attention, with advocates like Joey Concepcion, Founder of Go Negosyo, stressing the necessity for a stagging implementation alongside initiatives to enhance the skills of employees in the Philippines.
Speaking on the importance of uplifting the lives of people, Concepcion highlighted the significance of an active consumer base for the Philippines’ consumer-driven economy, asserting that increased wages would stimulate consumption spending and consequently bolster the economy.
Concepcion urged for a gradual implementation of the wage hike, citing historical precedents where wage adjustments were incrementally introduced across various presidential administrations. He noted that previous increases under the Arroyo, Aquino III, and Duterte administrations were spread out over time, ranging from P10 (US$0.18) to P33 (US$0.59). Since the tenure of President Bongbong Marcos, the cumulative wage increment has totalled P40 (US$0.72).
Expressing concern for struggling entrepreneurs, Concepcion underscored the importance of considering medium-sized businesses, which form a significant part of the enterprise landscape. He cautioned against measures that might impede ongoing economic recovery efforts, especially amidst positive signs of foreign investment and corporate optimism in infrastructure projects, reported Philstar.
“We worry for those who are barely making it,” he explained. “Having come from the pandemic and now our economy is accelerating, we should be careful not to derail the momentum.”
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Concepcion advocated for a holistic approach, emphasising the need to prioritise job creation and workforce development alongside wage adjustments. He said, “Job generation is key and it is what we want to achieve. The more jobs created, the better it is for Filipinos. As the demand increases and there are more jobs, that is what we want to see and then the wages will follow.”
