The Philippine Senate has overwhelmingly voted in favor of a bill that mandates a P100 increase in the daily minimum wage for private sector employees.
Senate Bill 2534, also known as the “An Act Providing for a 100 Pesos Daily Minimum Wage Increase for Employees and Workers in the Private Sector,” passed on its third and final reading, Senate president Juan Miguel Zubiri posted on his Facebook page.
It garnered 20 affirmative votes and zero negative or abstention votes.
This landmark decision aims to improve the living conditions of Filipino families by boosting the income of millions of workers. However, the bill excludes establishments with less than 10 employees, a capital of less than P3 million, and those registered under the Barangay Micro-Business Enterprise Act (RA 9178).
While the increase is expected to benefit many, concerns have been raised by some sectors. The Department of Labor and Employment (DOLE) warned that the wage hike could lead to job losses, particularly in micro, small, and medium enterprises (SMEs).
Critics also argue that the increase might translate to higher prices for goods and services, further impacting consumers.
Despite these concerns, the Senate emphasized that the bill was carefully crafted to ensure a balance between improving workers’ lives and protecting businesses. Senator Francis Escudero clarified that the increase will not affect existing wage rationalization laws and micro-business enterprises.
The passage of the bill now awaits the House of Representatives’ approval before being sent to the President for signature. The increase will take effect once the bill is signed into law.
