Business leaders emphasize that the newly approved P85 increase in the Metro Manila minimum wage must be supported by reforms that raise productivity and lower operating costs, ensuring that employers can meet the new requirement without jeopardizing employment.
Ferdinand A. Ferrer, president of the Philippine Chamber of Commerce and Industry, stresses the need for policies that enhance enterprise productivity and competitiveness, particularly for micro, small and medium enterprises that bear the brunt of rising labor expenses.
The Regional Tripartite Wages and Productivity Board set the daily minimum wage for Metro Manila at P780, reflecting the P85 uplift approved on Wednesday.
Manufacturers are confronting heightened energy and logistics expenses, tighter financing conditions following recent interest‑rate hikes, and lingering global trade uncertainties, according to the Federation of Philippine Industries.
Despite a modest rise in the manufacturing Purchasing Managers’ Index to 50.9 in June, business confidence remains muted as supply‑chain disruptions and input‑cost pressures persist.
Elizabeth H. Lee notes that sustaining manufacturing growth will require balancing support for workers with the ability of firms to continue investing, hiring, and competing in a volatile environment.
Donald Patrick L. Lim highlights that higher productivity, robust economic growth, and quality jobs are essential for lasting income gains, while acknowledging that many MSMEs face added cost pressures that could curb hiring and expansion.
Calls are growing for a “productivity‑driven” approach to wage growth, alongside measures to improve the ease of doing business, reduce logistics and energy costs, and invest in skills and technology, with the aim of extending inflation‑adjusted benefits to all workers.
