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Gatchalian: Wage setting best left to tripartite boards

MANILA, Philippines — With the House of Representatives approving a proposed P200 across-the-board wage hike, Sen. Sherwin Gatchalian expressed concerns about balancing wage increases with economic stability.

The Senate has already passed a P100 legislated wage hike, raising questions on whether the higher proposal from the lower chamber is realistic.

Gatchalian underscored the difficulty in setting wage increases, which he believes should ideally be handled by regional or national wage boards for flexibility and speed in adjustments.

“In a sense, it is very difficult to balance wage hikes. That is why it is left to the regional or national wage boards because they should be flexible and quick in making adjustments. If the increase is too high, businesses – especially small ones – will be affected. They may shut down, leading to job losses. On the other hand, if the increase is too low, it does not match inflation, which is a key reason for raising the minimum wage,” the senator said in an interview over dzBB.

The senator acknowledged criticisms that wage boards often act too slowly and approve only minimal increases, sometimes as low as P15 to P20.

“In an ideal setting, wage boards should handle this because they can respond faster. However, during our deliberations, we found that adjustments took years. By the time wages increased, prices had already risen significantly. That’s why the Senate agreed to pass a P100 legislated wage hike – because, in some cases, it took five years before a wage increase was approved,” Gatchalian said.

On whether Congress can pass the wage hike before the 19th Congress adjourns, Gatchalian noted that while possible, it would require urgent certification from the President.

“If the House has approved it, it will be transmitted to the Senate, but there must be a certification of urgency to speed up the process. Even then, we need to carefully study the discrepancies between the House and Senate versions to ensure a balanced approach,” he said.

The senator also acknowledged concerns about the potential inflationary effects of a wage hike: “Businesses will likely pass on the costs to consumers through higher prices for goods and

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