NextGen Day

Not all micro, small, and medium-sized businesses (MSMEs) are exempt from the application of the minimum wage, according to a statement made on Tuesday by the Department of Labor and Employment (DOLE) in Negros Oriental.

At a Kapihan sa PIA seminar held in this city, Ma. Teresa Tanquiamco, the provincial director of DOLE-Negros Oriental, stated that other government agencies have their own criteria and regulations that determine whether an MSME qualifies for exemption.

According to Tanquiamco, “Our office has received numerous complaints from business owners asking why they are not exempt from paying income tax and the minimum wage to their employees.”

She asked the Department of Trade and Industry (DTI) to connect with these MSMEs so that they may be advised appropriately.

MSMEs fall under one of the three classifications (micro-enterprise, small enterprise, or medium enterprise) based on assets, which would determine whether they are exempt from the implementation of the minimum wage, according to DTI-Negros Oriental public information officer Jade Bato in an interview with the Philippine News Agency.

According to Bato, the DTI’s Barangay Micro Business Establishment (BMBE) certification and the Bureau of Internal Revenue’s income tax exemption certification are both necessary for the exemption.

The DTI considers MSMEs with assets up to PHP100 million.

According to Bato, small firms and sole proprietorships have assets of up to PHP 50 million, medium-sized enterprises have assets of up to PHP 100 million, and micro businesses and sole proprietorships have assets of PHP 3 million or less.

She said that only companies that qualify as micro or sole proprietorships under BMBE are exempt from the minimum wage.

The BMBE certification has a two-year validity period, and when it does, an inspection or validation will be done to determine whether or not the business still qualifies for renewal, particularly if its assets have already increased, according to Bato.

In Negros Oriental, there are over 9,000 registered MSMEs, of which about 90% are small businesses with BMBE accreditation.

Tanquiamco reported that her office is now working to resolve 132 cases of underpayment of salaries and non-payment of benefits.

She assured the populace that the minimum wage law is being properly enforced and that frequent inspections are being done to make sure businesses are abiding by the law.

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