A proposed P100 wage hike for minimum wage earners could lead to wage distortion, Labor Secretary Bienvenido Laguesma said Wednesday, putting pressure on business owners to increase wages of middle management.

Speaking to TeleRadyo Serbisyo, Laguesma said over 8 million workers could indirectly benefit from an increase in minimum wage.

"Kung ang sweldo ay maabutan batay sa correction nung distortion ay pwede kayong makipag-usap sa management, dahil yung sweldo ay inabutan na ng mas junior sa akin, mas konti ang responsibilidad," he said.

"Ang chain reaction ng mga karagdagang sweldo, umaabot kahit na hanggang sa managerial level."

He said inflation is an indirect effect of any minimum wage hike, which is managed by an increase in production.

The Senate on Monday passed on third reading Senate Bill No. 2534, which seeks a P100 daily minimum wage increase for employees and workers in the private sector.

Twenty senators voted in favor, with zero negative vote and no abstentions.

Senate OKs P100 wage hike bill

Rep. Joel Chua, a member of the House of Representatives committee on economic affairs, earlier warned a P100 wage hike could lead to inflation, layoffs or even the shutdown of companies.

Layoffs, shutdowns: Lawmaker sees 3 scenarios in P100 wage hike