DESPITE throwing his support to the recent approval of a P100 daily pay increase for minimum wage earners, Joey Concepcion, lead for the Jobs cluster of the Private Sector Advisory Council (PSAC), expressed concern on its impact to “struggling” entrepreneurs nationwide.
“Not everybody can afford the P100 wage increase. Maybe the large corporations and those who are doing well but many are also not doing well. The micro might be exempted, but what about the medium-sized negosyantes? They will be affected,” he said. “Large corporations can afford it, but what about the SMEs [small and medium enterprises] who are the bulk of the enterprises in the country?”
Concepcion, who is also the founder of Go Negosyo, shared such concern since the investment pitches of President Ferdinand R. Marcos Jr. to foreign investors are just beginning to come into fruition alongside the growing confidence of biggest corporations in the country to bet on infrastructure.
“We worry for those who are barely making it. Having come from the pandemic and now our economy is accelerating, we should be careful not to derail the momentum,” he underscored.
For him, the additional P100 pay should be staggered over time and that it should be made more sustainable by upskilling the Filipino workers.
“I support the wage increase; we want to uplift the lives of people,” he said, adding that the increase in purchasing power of the people due to higher salary is vital for a consumer-driven economy like the Philippines. “As wages increase, consumption spending will increase and help the economy.”
Nevertheless, he believes the stipend growth must not be implemented in one go. He said: “Let’s spread it out.”
Taking a cue from the previous administrations, Concepcion pointed out “most of the wages were gradually increased over time. Nobody during their term had an immediate increase of P100.”
He cited that the increases ranged from P10, to P20, to P33 during the terms of former presidents Gloria Macapagal-Arroyo, Benigno Aquino Jr. and Rodrigo Duterte, and that these were made over time. Arroyo increased wages a total of P154 over nine increases, Aquino Jr. a total of P87 over six increases, and Duterte a total of P79 over three increases. More than a year since President Marcos took office, wages have grown by P40.
The PSAC’s lead for the jobs cluster, rather, suggested the government to remain focused on generating more jobs and upskilling the workforce.
“Hopefully our people will upskill and reskill, and they will get a higher pay,” he said. “Our goal in PSAC is to find a way to upskill employees so they get a better wage.”
The entrepreneurial czar emphasized that creating employment is key and what the Council wants to accomplish.
“The more jobs created, the better it is for Filipinos. As the demand increases and there are more jobs, that is what we want to see, and then the wages will follow,” he said.
“How to make it sustainable is to upskill. This is where the private sector is trying to put more focus. There are a lot of opportunities for Filipinos, and this is where I believe why we should start with the senior high school students, so that quality basic education is given,” he added.
Concepcion leaves to experts the determination of how much pay increase is needed.
“Right now, it is at P100. But if it can be staggered, we can let that discussion continue on this basis and see how businesses can live with that,” he said. “Over time, it is manageable.”