President Ferdinand "Bongbong" Marcos Jr. on Friday emphasized the need for a thorough study on the proposed P200 daily across-the-board wage increase for private sector workers, citing its potential impact on businesses, particularly micro, small, and medium enterprises (MSMEs).

The House Committee on Labor and Employment approved the measure on Thursday and lawmakers have urged Marcos to certify it as urgent. However, the President stressed the importance of reviewing its legal and economic implications before making any decision.

“Well, the thing is, we have a tripartite board that actually determines the increase in wages. So, we still have to study it further to see how that will work together,” Marcos said in an ambush interview in Pasay City. “The tripartite body was created by Congress, and it's their job to determine the minimum wage.”

Concerns over inflation and MSMEs

Marcos acknowledged the struggles of minimum wage earners, especially with rising prices and inflation.

“It’s very clear that prices are going up. Inflation is still there. We haven’t managed to contain it completely,” he admitted. “So, it’s certainly something we have to think about to assist ordinary people.”

However, he raised concerns about how small businesses would cope with the wage increase, warning that MSMEs may reduce their workforce if they cannot afford higher wages.

“The big corporations have no problem with that. No matter what increase you put on them, they can handle it. But the small businesses — sari-sari stores, beauty parlors, and others — are the ones affected,” he said. “They don’t have additional funds to pay higher salaries.”

The President also pointed out the risk of inflation, saying a wage hike could drive up the cost of goods and services.

“It could be inflationary. If wages increase, businesses might respond by raising prices,” he explained.

Finding a balanced approach

Despite these concerns, Marcos believes there are ways to increase wages while addressing legal and economic challenges.

“There is a way to increase it, but we need to resolve the legal issues and economic impact first. It still deserves a great deal of study,” he said.

Marcos reassured the public that the government is actively working on solutions to address wage concerns, particularly in light of rising costs of living. However, he maintained that any decision on a wage hike must carefully balance the interests of both workers and small business owners.