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Friday, April 12, 2024

DOLE to study cash subsidy for Filipino workers as better option to minimum wage hike

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A new government cash subsidy for workers displaced by the Covid-19 pandemic is now being considered by the Department of Labor and Employment (DOLE).  

Labor and Employment Secretary Silvestre H. Bello III said DOLE is awaiting the proposal of the Associated Labor Union (ALU) for a P2,000 to P4,000 subsidy for workers.

He said this might be a better alternative than a minimum wage hike, which he said many employers will not likely be able to afford due to the pandemic. 

However, the cash subsidy will have to go through an extensive study especially from government economic managers since it will involve millions of pesos to implement, according to Bello. 

“It will depend on the [financial] capacity of the government,” Bello said. 

The implementation of the said proposal is expected to face stiff financial challenges since the government already allocated its funds this year for other programs in response to the pandemic. 

Bello pointed out their proposed P20-billion minimum wage subsidy for employers was scrapped in the 2021 General Appropriations Act (GAA) due to lack of funding. 

Presidential spokesperson Harry Roque said Malacañang will support the said proposal from ALU-TUCP if the government could raise the necessary funds for its implementation.

“We will see if this can be implemented since we still don’t know where the [funds] for it will come from,” Roque said.

Image credits: Roy Domingo

Read full article on BusinessMirror

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