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DOLE thumbs down P125 wage hike proposal

The Department of Labor and Employment (DOLE) has thumbed down the P125 across-the-board wage hike proposal from the labor sector, saying it already goes beyond its mandate.

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In a press conference, Labor and Employment Secretary Silvestre Bello III confirmed their regional wage boards will no longer use the amount in their ongoing stakeholder consultations for a new wage adjustment.

He said only Congress can implement a mandatory wage increase.

“It is already beyond our capacity… It has to go through a legislative act. This is no longer under our jurisdiction,” Bello said during the Labor Summit organized by DOLE in Quezon City Monday, October 17.

Instead, the regional wage boards are now free to determine the possible wage hike in their jurisdictions.

“But our consultations will continue… What will happen is that our regional wage board are the one which will conduct the periodic assessment of their respecitve regions. They will be the ones to submit their recommendations (for the wage hike),” Bello said.

DOLE made the statement after the National Economic and Development Authority (NEDA) revealed last week the proposed P125 wage hike will cause adverse effects to the economy.

NEDA also earlier released the result of a simulation study stating the said wage adjustment will lead to the displacement of around half a million workers.