NEDA: P35 NCR minimum wage hike to affect at least 40,000 workers

[Tedday2223]

National Economic Development Authority (NEDA) Secretary Arsenio Balisacan said during a Tuesday Palace press briefing that around 40,000 to 140,000 workers could be affected by the approved P35 increase in the daily minimum wage of workers in the National Capital Region (NCR). Balisacan added that the hike could also impact the country's unemployment rate. ''[F]or the wage orders that have been issued as of March 2024, we still have all the numbers but our estimates so far suggest that the national output GDP would be impacted negatively. But it’s a very small impact. It’s just one-tenth of… about one-tenth of one percent,'' the NEDA chief explained. ''It’s very negligible. It could increase the unemployment rate. But again, it’s a very negligible number and it could impact something like 40,000 to 140,000, depending on the region. But still again, not as big as one would expect if those rate adjustments were much higher,'' he added. Balisacan said the wage adjustment would not constrain the Philippine economy. ''For so long as those wage adjustments are not too high to discourage investments, those adjustments are welcome,'' Balisacan said. ''And the data that we have seen is that as of March, April this year – those adjustments are simply adjusting to the level of inflation, and a little bit more so that the purchasing power of workers, wages, and salaries will not fall. And that should not worry the business community,'' he said. The National Wages and Productivity Commission released the decision on July 1 and this will be effective 15 days after the publication of the order in national dailies. According to the Department of Labor and Employment, retail and service establishments that employ not more than 10 workers, and enterprises affected by natural calamities and/or human-induced disasters, may apply to the Regional Tripartite Wages and Productivity Board for exemption from the wage increase. The increase will also not cover Barangay Micro Business Enterprises as stated in Republic Act No. 9178.​

 

[redvelvetjoy]

The recent P35 daily minimum wage increase in NCR highlights the delicate balance between supporting workers and maintaining economic stability. While NEDA Secretary Balisacan's analysis suggests a minimal impact on GDP and unemployment, it's crucial to monitor these changes closely. Ensuring that wage adjustments align with inflation while not discouraging investments is a positive step.