The government will temporarily cover the new P60 daily wage increase for employees of qualified small and medium enterprises struggling with increased labor costs, Malacañang announced Monday.

Under the Department of Labor and Employment’s (DoLE) newly launched Sagip Trabaho Program, the government will subsidize the P60 daily increase for eligible establishments over a 90-day period running from October to December.

Palace Press Officer Claire Castro said the temporary assistance aims to prevent layoffs and business closures as enterprises adapt to the adjusted minimum wage rates.

Meantime, explained that DoLE will disburse the wage differential directly for qualifying businesses, estimating that a participating small enterprise could receive up to P140,000 in assistance over three months.

“The DoLE will be paying for the difference,” Tolentino said during a radio interview. “This is meant to assist them through Christmas and support their employees.”

The subsidy scheme comes after Wage Order No. NCR-28 took effect 26 September, raising Metro Manila’s daily minimum wage from P695 to P755 for non-agricultural workers.

Rates for agriculture, retail, and service establishments employing 15 or fewer workers rose from P658 to P718. The adjustment impacts an estimated 1.1 million minimum wage earners in the National Capital Region.

Apart from the subsidy program, DoLE stated that distressed enterprises may apply for a formal wage order exemption within 75 days of implementation, provided they present supporting financial statements and Department of Trade and Industry certifications.

Tolentino added that the Sagip Trabaho Program will also extend to qualified small and medium businesses in Central Visayas, where a P42 daily minimum wage increase takes effect 14 October.