Metro Manila (CNN Philippines, February 28) — National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan said that imposing an increase in minimum wages amid steep commodity prices could be “very harmful” to the local economy.
At a House committee hearing on Tuesday, he warned that raising minimum wages by legislation given the current high inflation may do “more harm” in the long term.
“We can’t do that,” Balisacan said.
“If we want to bring this country to the league of our neighbors, the safest thing to do to increase wages is by way of expanding economic activities,” he also said, “and that means a lot of investments that need to be made to complement labor.”
With food prices haunting Filipinos, Balisacan said the government is addressing the “very low productivity” in agriculture by investing in the “right places,” such as improving irrigation and access to markets, as well as technology.
His reaction was in response to House Deputy Minority Leader France Castro’s call to increase the purchasing power of the public as surging prices continued to hurt consumers’ wallets.
The current minimum wages range from ₱533 to ₱570 per day in the National Capital Region, while workers outside the capital get ₱306 to ₱470.
Inflation, meanwhile, soared to 8.7% in January.
Castro maintained her position to demand higher pay for Filipino employees.
