MANILA, Philippines – Pasig City Rep. Roman Romulo yesterday said he expected the business process outsourcing (BPO) sector to cope well with “reasonable wage increases.”
“We do not see the P15-inrcease in the daily minimum wage (for private sector workers in Metro Manila) influencing the decision of BPO players to either step up, or slow down hiring,” he said.
Many college-educated, highly skilled employees in the BPO sector already receive superior wages, he said.
He added that while the recent wage hike would not directly benefit these employees, the increase would create “wage distortions” in their favor.
Romulo pointed out that a wage distortion is usually corrected through commensurate pay increases for those employees not covered by the specified increment.
“Fair wage increases will not diminish the country’s global competitiveness. If we look at India and our other competitors in the BPO space, their wages are rising faster than ours,” he stressed.
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Foreign exchange rate fluctuations tend to have greater weight on BPO operations than wage increases, he said.
“Like exporters, BPO firms sell their services to overseas clients. They generate revenues in US dollars, but spend for their operations here in pesos,” he said.
He said a weak peso and a strong dollar are considered beneficial to BPO firms.
Romulo is author of the Data Privacy Act of 2012, which has helped to attract global firms to either establish new in-house outsourcing units in the Philippines, or relegate their non-core, business support activities to independent BPO providers operating here.
The law mandates all entities, including BPO firms, to protect the confidentiality of personal information collected from clients and stored in IT systems, in accordance with rigorous international privacy standards.
Last week, the National Capital Region’s Tripartite Wages and Productivity Board ordered a P15-increase in the minimum wage.
The new P481 statutory floor wage will take effect sometime next month, or 15 days after publication.
The increase is expected to set off similar upward adjustments in the minimum wage in other regions. –Jess Diaz (The Philippine Star)
July 2025
Nutrition Month
“Give us much more than P50 increase
for proper nutrition!”
Invoke Article 33 of the ILO Constitution
against the military junta in Myanmar
to carry out the 2021 ILO Commission of Inquiry recommendations
against serious violations of
Forced Labour and Freedom of Association protocols.
Accept National Unity Government (NUG)
of Myanmar. Reject Military!
#WearMask #WashHands #Distancing #TakePicturesVideosturesVideos
July
3 July – International Day of Cooperatives
3 July – International Plastic Bag Free Day
5 July – World Youth Skills Day
7 July – Global Forgiveness Day
11 July – World Population Day
17 July – World Day for International Justice
28 July – World Nature Conservation Day
30 July – World Day against Trafficking in Persons
Monthly Observances:
Schools Safety Month
Nutrition Month
National Disaster Consciousness Month
Weekly Observances:
Week 2: Cultural Communities Week
Micro, Small, and Medium Enterprise
Development Week
Week 3: National Science and
Technology Week
National Disability Prevention and
Rehabilitation Week
July 1-7:
National Culture Consciousness Week
July 13-19:
Philippines Business Week
Week ending last Saturday of July:
Arbor Week
Daily Observances:
First Saturday of July:
International Cooperative Day
in the Philippines
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