Go Negosyo founder Joey Concepcion on Wednesday, Feb. 21, expressed his “reservations” about the P100 wage hike bill that senators unanimously approved for workers in the private sector, saying that not all businesses will be able to afford to increase the salaries of their employees.

Joey Concepcion (Photo from Go Negosyo/Facebook)

Concepcion, who is also the Private Sector Advisory Council (PSAC) Lead for Jobs, was quick to clarify during the Bagong Pilipinas Ngayon briefing that he is not against wage increases but rather than it should be done gradually.

“Yes, large corporations can better afford that. But remember, how about our small to medium sized entrepreneurs which are bulk, they constitute a great majority of entrepreneurs in this country,” he said.

While he understands that wage hikes will help the economy, a sudden increase of P100 in the daily minimum wage is not the way to go forward.

“As wages do increase, of course consumption spending will increase as well. That will help the economy. But what we should do is not to implement P100 wage at one go; let us spread that over a period of time,” he added.

He explained that historically, no president—from the time of former presidents Gloria Arroyo to Rodrigo Duterte—approved a P100 increase in wages.

“Most of the wages were gradually increased overtime—P15, P20, P25, P30,” he said.

While large corporations might be able to afford the bill’s proposal, Concepcion lamented that the same isn’t true for small- and medium-sized entrepreneurs.

“What we worry more are for those who are barely making it. Coming from the pandemic a year ago and coming back now to we call acceleration in Philippine economy. Let us not break the momentum.”

On Monday, Feb. 19, senators unanimously approved Senate Bill (SB) 2534, under which all minimum wage earners in the private sector nationwide, whether agricultural or non-agricultural, will be entitled to the P100 increase.

The last legislated wage hike in the Philippines was in 1989 with the enactment of Republic Act 6727 or the Wage Rationalization Act, which effectively declared that wages would be set on a regional basis by the regional wage boards.

Meanwhile, Concepcion pointed out that the focus should be on reskilling and upskilling Filipino workers, as well as on creating more jobs.

“Hopefully, some of our people will start to upskill and reskill themselves kasi (because) the more skill you have . . . even move up to the ladder and be promoted to higher positions which will give you higher pay,” he said.

“We really have to reskill, upskill our employees so they can receive better wage,” he added.

Helping small entrepreneurs “move up in life” is also Go Negosyo’s “goal.”

“Yan ang importante (That’s what’s important). Do we implement a P100 wage increase at one go or do we plan that overtime para hindi naman masakit ‘yan sa mga negosyante na bumabangon pa lang (so it will not affect our businessmen who’s just rising up),” Concepcion said.