Businesses in retail, services sector may apply for wage hike exemption — DOLE

BENEFICIARIES Workers in a garment factory in Lapu-Lapu City, shown in this 2020 photo, will benefit if petitions for wage increase in Central Visayas are approved. —PHOTO COURTESY OF MEPZ WORKERS ALLIANCE

MANILA, Philippines — Businesses in the retail and services sector may apply for exemption from the wage hike, the Department of Labor and Employment (DOLE) – National Wages and Productivity Commission (NWPC) said Monday.

The daily minimum wage has increased by P33 in Metro Manila, and by P55 to P110 in Western Visayas, the DOLE announced over the weekend.

Exemptions of micro-enterprises from the wage hike was first raised by Presidential Adviser for Entrepreneurship Joey Concepcion said that “financially strapped” businesses may not survive if compelled to raise the wages of their employees.

“Ito naman po ay nakapaloob na doon sa ating (This is under our) omnibus rules on minimum wage determination na ‘yung mga (that) micro businesses in retail and service sector that are employing not more than 10 workers can apply for exemption,” NWPC Executive Director Maria Criselda Sy said in a press briefing.

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“Ganu’n na rin po ‘yung mga establishments na naapektuhan ng natural calamities and in our case right now, naapektuhan ng pandemic. So, pwede po silang mag-apply for exemption,” she elaborated.

(This also goes with establishments affected by natural calamities and in our case right now, those affected by the pandemic. So, they can apply for an exemption.)

Sy said that those who will apply must submit the required documents to the regional wage boards for further review. The board will then decide if the applicant should be granted an exemption or not.

Meanwhile, barangay micro business enterprises are automatically not covered by the wage hike order.

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