TUCP’s Atty. Zeus R. Mabanag, Regional Vice-President of ALU-CVR, and Jun P. Tagalog, Education and Information Director of ALU Central Visayas, at a Press Conference on Thursday, April 3.| CTU Intern Pinky Rondina
CEBU CITY, Philippines – Micro, small, and medium enterprises (MSMEs) are raising alarms over the proposed P200 daily wage hike by the Trade Union Congress Party (TUCP).
Many small business owners believe that while higher wages benefit workers, the sharp increase might be unsustainable for enterprises already struggling with high operational costs and taxes.
In a Facebook post on April 3, business owners and workers shared their views on the wage hike, with many afraid it could force smaller enterprises out of business.
READ: Palace: P200 across-the-board minimum wage hike under review
Russell Reyes voiced his concerns in a comment on CDN’s Facebook post about TUCP urging President Ferdinand “Bongbong” Marcos Jr. to prioritize the approval of the wage hike.
“Looya sa napogos og pa minimum nga employer oy gipatungan pag P200. Basin manirado na lang ug manarbaho na lang pod. Lugi gyud kaayu,” he said.
(I pity the employer who were forced to grant a minimum wage and now P200 is put on top of it. They might even close and will just be an employee. It is really a disadvantage to them.)
“Unsay pagtuo ninyo sa mga employers sa Cebu nagtubod ang kwarta gikan sa gawas? Kamatay adto ra nas mga dagko nga companya. Dagko na ra bag national og local taxes. Muundang na gyud na cla,” added Facebook user Jose Mariae Ora.
(What do they think of Cebu employers, they have a well of money from outside? That is just applies to big companies. The bags of the national and local taxes are really big now. They would probably end up closing.)
Despite these worries, TUCP representatives clarified that businesses falling under specific categories—such as Barangay Micro Business Enterprises (BMBEs), micro-enterprises, and financially distressed establishments—may apply for exemptions.
READ: Cebu biz leader warns: P200 wage hike could spell economic disaster
In a press conference on April 3, Lawyer Zeus R. Mabanag, the regional vice-president of Associated Labor Unions Central Visayas Region (ALU-CVR), and Jun P. Tagalog, Education and Information Director of ALU Central Visayas, addressed these concerns.
“What about sa mga gagmay na negosyo no? Actually, kanang balaod nga nagcreate sa mga RTWPBs, naa man nay provision ara nga katong mga gagmay na negosyo nga dili maka-afford maka-apply man sila ug exemptions,” Tagalog said.
(What about the small businesses? Actually, the law that created the RTWPBs, there is a provision there that small businesses who can’t afford can apply for exemptions.)
He explained that the law provided measures to protect businesses that could not afford the wage increase.
This means struggling businesses may be exempt from complying with the minimum wage law.
“Naa pa gyud balaod nga gitawag nato nga Barangay Micro Business Enterprise bitaw. Naa na siyay mga provision nga makaapply gihapon ang madistress nga gagmay na negosyo nga dili makaafford,” he said.
(There is a law that is called the Barangy Micro Business Enterprise. It has a provision that will apply too to those small businesses that will be distressed that cannot afford.)
Under Republic Act No. 9178 (Barangay Micro Business Enterprises Act of 2002), small-scale businesses in barangays receive government support for growth.
The Wage Rationalization Act further provides exemptions for retail or service businesses that employ no more than 10 workers and establishments severely affected by natural disasters or human-induced crises.
These provisions protect struggling enterprises while balancing business viability and fair labor practices.
House Bill No. 11376, proposing a P200 daily minimum wage increase, was approved on second reading by the House of Representatives.
The bill passed through viva voce or voice voting, with no amendments, but a substitute bill was introduced to apply the wage hike only to minimum wage earners, excluding those with higher salaries.
However, the bill could not proceed to the third reading due to Congress adjourning on February 5 for the election season.
Under current rules, bills must wait three days after the second reading before being considered for a third reading, and the adjournment delayed its passage.
TUCP voiced concerns, stressing that Filipino workers face low wages and need wage relief despite political tensions.