(MANILA BULLETIN)

As workers and employers began to debate their respective cases on the legislated wage hike in the House of Representative, wage subsidies have emerged as a common ground between the two groups.

House Committee on Labor and Employment Chairman Rizal 4th district Rep. Fidel Nograles said several resource persons have thrown their support behind the provision of wage subsidies so companies could actually fund the proposed minimum wage increase.

"A number of sectors have raised the possibility of government subsidizing the proposed wage increase during the hearing. I think this is a sound idea, but we also have to ask our economic managers whether the government can also cover the cost of such subsidies," said Nograles.

On Wednesday, Feb. 28, the labor committee began its deliberations on several bills aiming for an across-the-board minimum wage increase. The proposals range from a P150 wage increase to P750.

During the hearing, the proposed measures elicited mixed responses.

For worker groups, the across-the-board wage increase would help them cope with the high cost of living and give them a chance at a living wage.

Meanwhile, employer groups stressed that an increase may cause job losses and inflation.

As such, Nograles has directed his panel to ask for the government’s input regarding a wage subsidy.

"[Aside from] the wage subsidy, we will also continue to find measures that could help us come up with a win-win situation for all involved," the lawmaker said.

The Senate recently passed on third and final reading a bill that sought a P100 increase in the daily minimum wage of employees in the private sector.