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Small and medium-sized enterprises can absorb a P100 legislated wage hike after Congress lowered corporate income taxes, a senator said Thursday. 

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Small, medium-sized enterprises can absorb P100 wage hike: lawmaker

David Dizon

<p>Small and medium-sized enterprises can absorb a P100 legislated wage hike after Congress lowered corporate income taxes, a senator said Thursday.</p><p>The Senate on Monday passed on third reading Senate Bill No. 2534, which seeks a P100 daily minimum wage increase for employees and workers in the private sector.</p><p>Twenty senators voted in favor, with zero negative vote and no abstentions.</p><div><a href="https://news.abs-cbn.com/news/2024/2/19/senate-oks-p100-wage-hike-bill-1730" rel="noopener noreferrer" target="_blank">Senate OKs P100 wage hike bill</a></div><p>Sen. Sherwin Gatchalian said he voted in favor of the bill since the living wage is already at P1,100.</p><p>&quot;Kaya ako bumuto in favor, binabaan ito. Ang original proposal is P150 na medyo mabigat sa small and medium enterprises. Ang living wage ngayon ay P 1,100. Ang ating minimum wage naglalaro sa P500 to P610 so kalahati lang kaya marami sa ating pamilya hirap,&quot; he said in a TeleRadyo Serbisyo interview.</p><p>He added: &quot;Tiningnan din ng Senado ang kita ng SME kasama na ang malalaking enterprises pero dahil bumaba nga &#x27;yung corporate income tax sa CREATE Law…from 30% to 20% kaya lumaki &#x27;yung kanilang kita. Pumapalo ng around 12% yung kanilang gross profit dahil sa pagbaba ng income tax kaya sa aming computation dahil P100 lang ang idagdag, marami sa ating small and medium enterprises ay kaya nilang mag-absorb itong ganitong pagtaas ng (sahod).&quot;</p><p>Gatchalian said the wage hike takes priority over charter change since it affects minimum wage earners.</p><p>&quot;Talagang malapit ito sa sikmura ng taumbayan kaya ito ang inuna ng Senado para maramdaman agad ng ating kababayan,&quot; he said.</p><p>The lawmaker said he is also open to study a proposal for a staggered wage hike but noted there is no provision for such in the Senate version of the bill.</p><p>&quot;Sa Senate version walang ganung probisyon, pero magba-bicam pa &#x27;yan at pwedeng pag-usapan doon na gawin na lang staggered,&quot; he said.</p><p>Labor Secretary Bienvenido Laguesma earlier said a proposed P100 wage hike for minimum wage earners could lead to wage distortion, putting pressure on business owners to increase wages of middle management.</p><div><a href="https://news.abs-cbn.com/news/2024/2/21/p100-wage-hike-could-lead-to-wage-distortion-dole-932">P100 wage hike could lead to wage distortion: DOLE</a></div><p>The labor chief said over 8 million workers could indirectly benefit from an increase in minimum wage.</p><p>&quot;Kung ang sweldo ay maabutan batay sa correction nung distortion ay pwede kayong makipag-usap sa management, dahil yung sweldo ay inabutan na ng mas junior sa akin, mas konti ang responsibilidad,&quot; he said.</p><p>&quot;Ang chain reaction ng mga karagdagang sweldo, umaabot kahit na hanggang sa managerial level.&quot;</p><p>He said inflation is an indirect effect of any minimum wage hike, which is managed by an increase in production.</p><div><br/></div><div><br/></div>

<p>Small and medium-sized enterprises can absorb a P100 legislated wage hike after Congress lowered corporate income taxes, a senator said Thursday. </p>

Small and medium-sized enterprises can absorb a P100 legislated wage hike after Congress lowered corporate income taxes, a senator said Thursday.