The Department of Labor and Employment (DOLE) is rolling out a targeted aid package to assist micro, small, and medium enterprises (MSMEs) in Metro Manila struggling to manage the newly approved ₱85 daily wage hike.
Acting Labor Secretary Francis Tolentino noted that the initiative aims to ease the strain on resource-strapped businesses facing difficulties adjusting to elevated labor expenditures.
The pay adjustment is structured to take effect in two phases, starting with an initial ₱60 wage hike on July 25, followed by the remaining ₱25 installment in January of next year.
Under DOLE’s Adjustment Measures Program (AMP), eligible businesses will receive funding for operational tools, machinery, and productivity-boosting projects. The assistance enables smaller firms to mitigate operating overheads while freeing up resources specifically for employee payroll.
As an illustration, Tolentino pointed out that DOLE could finance essential high-cost equipment for an office or dining establishment, provided the money saved from the capital expenditure is reallocated toward employee wage adjustments.
“The program ensures comprehensive support for local MSMEs by integrating capacity-building programs, expanding financial access, and improving government service delivery,” said Tolentino during a press briefing.
“Through the AMP, DOLE provides establishments with mechanisms to comply with the new wage order, ensuring benefits for workers without compromising employers’ operation,” he added.
According to Tolentino, the initiative enhances enterprise resilience against economic headwinds through targeted interventions, including skills training, business upgrades, product innovation, labor law compliance, and strategies to foster harmonious labor-management relations.
Beyond the AMP support, qualifying enterprises may also submit applications for wage order exemptions with DOLE within the prescribed 75-day window, subject to established regulatory requirements.
The acting labor chief reiterated the importance of giving MSMEs stronger representation during wage board discussions, emphasizing that smaller enterprises bear the brunt of financial shock whenever salary hikes are mandated.