P125 wage hike likely to hurt economy: NEDA

ABS-CBN News

Posted at Oct 19 2016 05:47 PM

MANILA - The proposed P125 across-the-board wage increase for private sector workers is likely to hurt the economy, the National Economic and Development Authority (NEDA) said Wednesday.

Such a wage adjustment could trim gross domestic product growth to 5.5 percent, displace around 500,000 workers and push inflation to 9.7 percent next year, according to NEDA simulations.

“While the economic managers want to raise the living standards of workers and their families, we do not support the P125 daily wage increase as it is likely to have adverse impacts on economic growth, employment, and inflation,” said Socioeconomic Planning Secretary Ernesto Pernia.

A P125 wage hike bill is expected to be filed in Congress this year.