Department of Labor and Employment Secretary Rosalinda Baldoz has reiterated its stand that the proposed across-the-board P125 daily wage increase is not feasible, a DOLE press release said.

While the DOLE shares the view that there should be high and rising living standards for workers and their families, it cannot support the proposed across-the-board P125 daily wage increase as it will weigh down heavily on the economy through higher prices, loss of jobs, and slower overall economic growth, Baldoz claimed.

Baldoz was referring to the DOLE position paper presented in connection with House Bill No. 375, or "An Act Providing for a P125 Daily Across the Board Increase in the Salary Rates of Employees and Workers in the Private Sector and for Other Purposes".

The bill was filed by Anakpawis Partylist Rep. R. Mariano; Bayan Muna Partylist Rep. T. Casino and N. Colmenares; Gabriela Partylist Rep. L. Ilagan and E. de Jesus; Kabataan Partylist Rep. R. Palatino; and Teachers’ Partylist Rep. A. Tinio, the press release said.

The proposed measure was filed by the lawmakers with the committee on Labor and Employment on July 1, 2010, which grants a daily across-the-board P125 increase to all employees in the private sector, whether agricultural or non-agricultural, regardless of capitalization and number of employees, it added.

Citing the study made by the National Wages and Productivity Commission, or NWPC, Secretary Baldoz said the increase called for in the proposed measure will translate to a daily additional effective labor cost of P156.49 per employee per day (assuming a six-day workweek), or P4,081.78 per month per employee, or P48,981.37 per year per employee, based on the following computation.

A P125 across-the-board wage increase, Baldoz said, will result to higher Inflation rates, which she said will further erode workers' incomes.*

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