P125 legislated wage hike impractical: Palace-A A +A
Tuesday, March 20, 2012
MANILA -- Malacañang said on Tuesday that the proposed P125 across-the-board legislated wage increase is impractical.
Deputy presidential Spokesperson Abigail Valte said that based on Malacanang's computation, if the pending bill is passed, this could create a heavy toll on the employers which could result in workers' retrenchment.
"We have consulted President (Benigno) Aquino (III) this morning if we are going to support the P125 legislated wage hike that is now pending in Congress and this is his answer," he said, citing the computation that they made should the P125 wage hike is granted.
She said that it could mean P42,250 increase annually including the 13th month per worker.
"We multiplied it (P125) with 26 days, and for one month, the total increase will be P3,250," she said, adding that multiplying it with 13 months, the end result will be the P42,250.
She expressed doubt that the companies in the country could shoulder the increase.
She said instead of many Filipinos keeping their job, the P125 wage increase could create high unemployment.
"What we want is a wage increase that would consider inflation. The P125 seems to be very high," Valte said.
"It will not be practicable," she added.
Valte said workers could just seek for non-wage benefits from their employers aside from the wage petition before the regional wage boards.
"But we leave it to the employers what kind of non-wage benefits that they can extend to their employees," she said. (SDR/Sunnex)