P150 Minimum Wage Hike May Pull Inflation by 1.4%

Implementing the P150 wage hike across all businesses may incur a domino effect on the economy, Finance Secretary Benjamin Diokno said in a press briefing last Friday, May 19.

If the wage hike of P150 is implemented in the country, it will also increase the economy’s inflation to 1.4 percent.

Diokno said that the inflation this year is already projected to be at 5.5 percent. This means that with the implementation of the said wage hike, the estimated inflation this year might increase to 6.9 percent.

Diokno also said that the implications of the wage hike must be explained to the policymakers in the country.

Diokno added that it would be better to continue with the current system.

Moreover, the Senate labor panel had already approved “in principle” the proposed P150 minimum wage hike in the country.

The policy is now transferred to the technical working group as the deliberations are already done.

It can be remembered, that Senator Ramon Revilla Jr. has filed Senate Bill 2002, also known as the Across-the-Board Wage Increase Act of 2023, which aims to increase the minimum wage by P150. (ASC)