The Employers Confederation of the Philippines (ECOP) is open to calls to review the minimum wage at this time due to compelling reasons such as the rising oil prices that could impact on inflation.
ECOP said the any proposal should be within the purview of the wage boards, per region, where employers are represented.
Labor Secretary Silvestre Bello III on Wednesday ordered the Regional Tripartite Wages and Productivity Boards to review the minimum wages across the country amid the rising prices of oil products.
But ECOP warned raising the minimum wage would create distortion and would benefit only 16 percent of the 44 million labor force in the country. Of the 16 percent, only roughly 10 percent are receiving daily minimum wage.
ECOP also said as half of the micro enterprises have closed down during the pandemic, raising minimum wage would only make it hard for them to reopen.
ECOP clarified minimum wage is different from the living wage, saying the former is entry level wage.
The group said living wage should be improved, through additional benefits to a household with other members contributing to the household income. These include free use of facilities from the government and free health benefits, among others.
