With the regional wage board approving an ₱85 increase in minimum daily salaries, the Metro Manila minimum wage is set to rise to ₱780 per day.
This was announced by labor secretary Francis Tolentino following the Board’s approval of the proposed salary increas that would be implemented in two tranches.
Secretary Tolentino described the decision as “historic,” saying that the adjustment would benefit at least 1.1 million workers in the National Capital Region.
The labor chief disclosed that the first tranche will take effect on July 19, when the daily minimum wage will increase by ₱60 to ₱755, while the second tranche, covering the remaining ₱25, will take effect on January 20, 2027, bringing the daily minimum wage to ₱780 from the current ₱695.
Tolentino’s announcement came as the House committee on labor and employment was holding a hearing on bills seeking a legislated wage increase.
Despite the positive news, labor groups immediately criticized the increase as inadequate, saying it is too small and should not have been limited to Metro Manila.
“Napakaliit ng ₱85 na dagdag na sahod, hulugan pa at sa NCR lang. Lubhang hindi sapat kumpara sa ilang ulit na pagtaas ng presyo ng langis, singil sa kuryente at iba pang gastusin,” militant group Kilusang Mayo Uno (KMU) lamented.
Several labor groups at the House hearing have been pushing for a ₱200 wage increase and a ₱1,200 living wage.
In agreement, economic think tank IBON Foundation said regional minimum wages, including in Metro Manila where the rate is currently the highest, remain below what a family of five needs to live decently.
However, major business groups countered that the increase would overburden many companies even as it warned against the legislated ₱200 increase.
“(This) would raise payroll costs for small firms, pressure low-margin businesses and risk job losses or higher prices,” they argued.
The Philippine Chamber of Commerce and Industry (PCCI) added that a uniform increase would hit micro, small and medium enterprises—which make up a large majority of employers in the Philippines—hardest.