The potential impacts of a P1,200 daily minimum wage on small businesses in Metro Manila were discussed online following proposals to raise the rate.
Reports said that the Regional Tripartite Wages and Productivity Board (RTWPB) in the National Capital Region (NCR) has received 16 petitions so far seeking an increase in the daily minimum wage in the metro.
Currently, the minimum wage for workers in the NCR ranges from around P658 to P695.
The minimum wage is the lowest amount of remuneration that employers must pay their employees for the work rendered.
It varies by region, depending on the cost of living allowance, prices of goods and commodities and other factors. It also depends on industry classification.
Meanwhile, petitions to raise the NCR daily minimum wage to P1,200 have been filed by some groups, which believe it should be implemented amid rising fuel costs, sustained increases in commodity prices, and the declining purchasing power of the Philippine peso, among others.
While welcomed by some Filipinos, others have raised concerns about how it might affect micro and small enterprises, which earn less than larger corporations.
“Sa ideal na world, okay ito, pero ngayong mataas ang raw ingredients, mataas ang presyo ng kuryente… maraming magsasara na negosyo, lalo mula sa mirco at small businesses. Hindi kakayanin ‘yan ng employers mula sa MSMEs,” Jules Guiang, co-owner of the Urban Chick restaurant, wrote.
“Ilang negosyo kaya ang magsasara?” another asked.
“Kawawa small businesses dito. Malamang, madami magsasarado, tapos dadami lalo tao sa NCR. Gawan niyo paraan kung paano maalis ang provincial rate at pababain niyo presyo ng bilihin. Abolish niyo ‘yang n*etang VAT. Utang na loob, bigyan niyo naman ng dignidad ang mga Pilipino,” a different Pinoy said.
VAT refers to Value Added Tax, a consumption tax imposed on sellers engaged in trade or business in the country. It may be passed on to consumers or buyers of goods and services.
“This is the perfect storm. [P24,0000] per month will likely drive unemployment higher and force job cuts. Sad to say, but it’s building a case why AI and Robotics will eventually become much more affordable in a business sense,” another wrote, referring to artificial intelligence.
“Sobrang taas ng [P1,200]. From P695 NCR minimum, historically nasa 25–50 lang ang adjustments, kadalasan pa phased or naka-tranches. Tapos biglang halos 70 percent?” a different Pinoy said.
Meanwhile, the Department of Labor and Employment (DOLE) said its decision on the proposed P1,200 minimum wage in the NCR may be released by July.
“There is a 12-month cycle. NCR’s anniversary [of wage order issuance] is July 18; a new wage order may be issued by then,” DOLE spokesperson Lennard Serrano said.
