Government support for MSMEs pushed amid wage hike

MANILA, Philippines — Business groups are urging the government to provide support and pursue policies that promote growth of businesses, particularly micro, small and medium enterprises (MSMEs), amid the approval of the P85 daily minimum wage hike for workers in Metro Manila.

In a statement yesterday, Negosyo Advocates, composed of entrepreneurs and business advocates, said the minimum wage hike provides much-needed relief to Filipino workers and their families amid rising living costs.

However, the group said that enterprises, especially MSMEs, cannot carry the responsibility of helping workers on their own.

“MSMEs are already struggling with rising electricity rates, high fuel costs, expensive raw materials, increasing rent and other operating expenses,” Negosyo Advocates said.

The Philippine Chamber of Commerce and Industry pushed for wage policies that promote improved business productivity and competitiveness.

Federation of Philippine Industries chair Elizabeth Lee said the group also understands the basis for the wage adjustment, but recognizes how the wage increase compounds with other pressures already weighing on manufacturers this year such as elevated energy and logistics costs, tighter financing and global trade uncertainty.

House of Representatives committee on labor and employment chairman Rep. Jolo Revilla said the wage hike is a welcome development.

Gabriela Rep. Sarah Elago said the wage hike is grossly insufficient to meet the daily needs of Filipino workers and their families.

“Worse, the increase will be implemented in two tranches – with only P60 taking effect on July 19 and the remaining P25 not until January 2027,” she said, noting this amount could not even buy a kilo of fish, much less meat in the market.

The Alliance of Concerned Teachers said the P85 daily minimum wage increase is still below the estimated national average family living wage of P1,312 per day.

ACT-Private Schools secretary general Jonathan Geronimo said the wage increase falls far short of addressing the economic realities confronting Filipino workers. –  Delon Porcalla, Bella Cariaso