DOLE readies support system for MSMEs not ready for P85 wage hike
DOLE Secretary Francis N. Tolentino explains the Adjustment Measures Program (AMP) which is intended to help micro, small, and medium enterprises
cope with potential disruptions from the wage hike. (Photo by Alikaine Creo/DOLEIPS)
The Department of Labor and Employment (DOLE) will be offering assistance program to micro, small, and medium enterprises (MSMEs) in Metro Manila that are not yet ready to bear the impact of the P85 wage increase
DOLE Secretary Francis Tolentino said the move is aimed at cushioning the adverse effects of the wage increase particularly to small businesses with limited capital and facing financial constraints on wage adjustment.
The P85 will be implemented in two tranches— On July 25 this year with P60 and in January next year for the remaining P25.
Tolentino said the assistance program is under DOLE’s Adjustment Measures Program (AMP) that provides funding for equipment and other productivity-enhancing measures to help small businesses manage higher labor costs while using their available capital for wage adjustments.
For example, he said DOLE may shoulder a particular expensive equipment needed in the office or restaurant but under the condition that the supposed capitalization for such equipment will be diverted to wage adjustment of the workers.
“The program ensures comprehensive support for local MSMEs by integrating capacity-building programs, expanding financial access, and improving government service delivery,” said Tolentino during the Kapihan sa Manila Hotel hosted by former senator and now Manila Hotel President Joey Lina and former Communications secretary and now Manila Bulletin publisher Sonny Coloma.
“Through the AMP, DOLE provides establishments with mechanisms to comply with the new wage order, ensuring benefits for workers without compromising employers’ operation,” he added.
Tolentino explained that the program helps build resilience against economic disruptions through comprehensive interventions, including capacity-building, business enhancement, product development, labor compliance, and industrial peace-building measures.
Aside from the AMP, Tolentino said that they may also file for exemption certificates at DOLE within the prescribed 75-day period, subject to requirements and qualifications.
Tolentino has previously highlighted the importance of ensuring that MSMEs' concerns are heard in wage-setting discussions and encouraged them to strengthen their representation in the tripartite process, as they are among the most affected by wage adjustments.