No wage hike suspension; BSP sees inflation risk
The Philippine government has confirmed that a scheduled P85 wage hike in Metro Manila will proceed despite concerns from the private sector regarding inflation and potential layoffs. The Bangko Sentral ng Pilipinas is currently assessing the inflationary risks associated with this record-high increase.
Why it matters
This decision balances labor demands for higher pay against economic concerns regarding inflation and business viability for MSMEs.
MANILA, Philippines - Despite fears of price increases and layoffs, Malaca ang said the P85 wage hike in Metro Manila will proceed as scheduled.
"There is no suspension. The implementation is pushing through," Presidential Communications Undersecretary Claire Castro told reporters yesterday.
She said the Palace has not received any request from the private sector to halt the wage hike.
The Department of Labor and Employment (DOLE) also confirmed that the wage increase implementation will push through.
According to Labor Secretary Francis Tolentino, this is the biggest wage increase in the region's history.
Earlier, the Foundation for Economic Freedom called on the government to suspend the implementation of the wage hike in Metro Manila pending a review.
According to the group, the P85 increase far outpaces both productivity growth and inflation, raising the risk of higher prices for basic commodities as businesses pass on increased labor costs to consumers.
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