The lead person in the jobs group of the Private Sector Advisory Council, Joey Concepcion, aired contentions on proposals for a legislated wage hike of P150, saying it will have a negative effect on the economy, particularly inflation.

"If they raise the wages, you will have some level of inflation because it will be passed on. It's a tough thing, although I know that people need better income," he said during the Pandesal Forum in Kamuning Bakery, QC on Thursday.

He maintained that not all companies can afford the proposed wage increase being pushed by Senate President Juan Miguel Zubiri.

Small firms can't afford it

"Not all companies can afford it. Small companies are just coming back, especially those in the tourism sector who just really came back from their business. The senators and congressmen have their own views that people need wage increases. I think what we have to achieve is a balance. I have a neutral view on this," he said.

He said the government should generate more jobs this time, noting "If wage increase will affect jobs, then it's not good."

"Without jobs, not everybody will benefit from a wage increase. Once we have achieved the priority of job generation, definitely we can do it," he stressed.

Earlier, the Employers Confederation of the Philippines and other business groups strongly opposed the proposal for the P150 legislated wage hike, echoing Concepcion's opinion that the country's inflation rate could further worsen if lawmakers let it.