Speaker Ferdinand Martin Romualdez said Jan. 29 that the House of Representatives is expediting deliberations on proposed wage hike legislation to address the urgent need for economic relief, while ensuring a balanced approach that considers the welfare of workers and the sustainability of micro, small, and medium enterprises (MSMEs).
The House is working tirelessly to craft a wage increase measure that meets the needs of our workers while ensuring that businesses, particularly MSMEs, are supported during this transition. This is a critical step toward achieving inclusive growth and addressing the immediate challenges faced by Filipino families, Romualdez said.
On Tuesday night, the Speaker met with labor leaders and representatives of the country’s major labor groups at the Social Hall of his office to listen to their inputs in support of their plea for a legislated wage hike.
Deputy speaker and TUCP Partylist Rep. Democrito Raymond Mendoza, and Tingog Partylist Rep. Jude Acidre accompanied the labor leaders in their meeting with Romualdez.
As inflation continues to drive up the prices of essential goods and services, Romualdez stressed that the need for a meaningful wage adjustment is more pressing than ever.
He noted that the last legislated wage increase was enacted more than three decades ago under the Wage Rationalization Act of 1989, which successfully raised wages without causing massive inflation or widespread business closures.
“If we were able to do this in the past, there is no reason why we cannot do it now, especially with careful planning and collaboration with all sectors. Hindi lang natin tataasan ang suweldo, titiyakin din natin na makatutulong ito sa ating ekonomiya,” the House leader stressed in a press release. “Ang lumalabas na consensus dito sa House of Representatives, pending ongoing public consultation, baka kayang dagdagan ng P200 bawat araw ang minimum wage.”
Romualdez underscored the broader economic benefits of a wage increase, such as boosting household spending, stimulating local economies, and driving long-term growth.
“Higher wages mean that workers have more disposable income to spend on goods and services, increasing demand across various sectors. Since consumption is a significant driver of economic growth, this increased spending stimulates business activity, generates revenue, and supports job creation. In the Philippines, where consumer spending accounts for a substantial portion of GDP, a wage hike can act as an economic catalyst,” he said.
A well-designed wage hike is not just an immediate solution to help workers cope with inflation, it is an investment in our collective future, he added.
He highlighted the importance of a win-win solution that balances the interests of workers and employers. Provisions being considered include wage subsidies and exemptions for MSMEs, which are vital to the Philippine economy.
“Our MSMEs are the backbone of our economy, and they must be protected even as we address the needs of our workers. Through wage subsidies and other mechanisms, we aim to ensure that no one is left behind,” he said.
The Speaker assured the public that the House is consulting extensively with all stakeholders, including workers’ groups, employers, and economists, to ensure that the resulting legislation is inclusive and sustainable.
“This is a delicate balancing act, but the House is committed to addressing the concerns of all sectors. We are working on a measure that truly reflects the spirit of bayanihan, one that uplifts workers, supports businesses, and strengthens the economy,” Romualdez said.
Labor leaders present in the meeting Jan. 28 were Michael Mendoza – president of the Associated Labor Unions; Gerard Seno, president of the Associated Professional, Supervisory, Office and Technical Employees Union; Cecilio Seno Jr., president of ALU-Metal; Atty. Allan Montano, vice president of the Federation of Free Workers; and Josua Mata, secretary general of Sentro ng mga Nagkakaisa at Progresibong Manggagawa, among others. ||
