WAGE INCREASE EXEMPTION. Recognizing the difficulties that small businesses face in adopting the wage increase, the Department of Labor and Employment has stepped up to provide assistance.
In response to concerns about implementation issues following recent wage increases, the Department of Labor and Employment (DOLE) has stepped forward to provide hands-on support for struggling small enterprises, in line with President Ferdinand Marcos Jr.’s directive to ensure government support to vulnerable sectors, such as micro, small, and medium enterprises (MSMEs).
Under Labor Secretary Francis N. Tolentino’s leadership, exemptions from the wage hike are granted to retail or service businesses employing up to 10 workers, as well as enterprises affected by natural or man-made disasters.
Duly registered Barangay Micro Business Enterprises (BMBEs) remain excluded from the coverage of the Minimum Wage Law and need not apply for an exemption.
Micro and small enterprises have a 75-day window from the Wage Order’s effectivity date to file for an exemption, and must submit all application forms and required paperwork directly to their respective Regional Tripartite Wages and Productivity Boards.
If the application is rejected, the business must grant the mandated wage adjustment retroactive to the Wage Order’s effectivity, including a 1% monthly interest charge pursuant to the applicable guidelines.
In addition to the wage increase exemption, DOLE rolled out the Sagip-Trabaho program, which supports small and medium enterprises through direct wage support, sustaining employment, preventing business shutdowns, and delivering assistance and vital resources to qualified small and medium enterprises (SMEs).
For more information on the DOLE Sagip-Trabaho Program, interested firms may contact the DOLE Planning Service at trunk line (02) 8527-3000 loc. 617. | via DOLE
About the Author
