With the announcement of a possible wage hike, no employee would dare refuse the chance considering the recent increases in contributions of PhilHealth, Pag-ibig and SSS.
However, employers and business owners are far from happy. They are now calling to legislators to reconsider the proposal and look at it from the business side.
Eugene Tan, president of the Philippine Chamber of Commerce and Industry-Tacloban Leyte chapter, said implementing this huge increase would not benefit the workers but could lead to unemployment.
If minimum wage increases together with other contributions, employers would have to reduce the number of workers to avoid losing profit. This would then lead to more unemployment in the region.
“We have submitted our position paper, including those in the Western and Central Visayas, on this proposed P100 legislated increase as this could lead to more repercussions than benefits to our workers,” Tan told Inquirer.
Tan also emphasize that the P100 increase is already more than what small and micro enterprises could chew considering they also have to pay for other operational expenses
While the Senate has already approved the proposal, he said they want the House of Representatives to realize the bad side of the proposed measure.
Tan said that if there would be an increase in unemployment, peace and order could be affected.
“The crime rate in the country could increase,” he said.
Any wage adjustment, he said, is better left to regional wage boards and not by an act of Congress.
“We have the regional wage boards which are more equipped in determining any wage adjustments. "
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