Labor Secretary Bienvenido E. Laguesma (Photo: DOLE)
The Department of Labor and Employment (DOLE) has recently provided insights regarding the proposed ₱200 across-the-board wage increase. The prevailing stance is that such legislation is not urgently needed, particularly considering the Philippines already boasts one of the highest minimum wage rates in the Southeast Asian region.
According to DOLE Secretary Bienvenido Laguesma, the existing framework of regional wage boards serves as the most suitable platform for determining minimum wage rates. He defined these boards’ roles as setting “floor” rates intended for entry-level or unskilled workers. The emphasis on regional wage boards reflects a strategy focused on local economic conditions and labor markets.
Laguesma highlighted the competitive nature of the Filipino wage structure within the ASEAN region, emblematic of the broader economic landscape. For instance, he noted that Metro Manila’s newly approved daily minimum wage stands at ₱695, which surpasses those in neighboring countries such as Vietnam, Malaysia, Thailand, and Indonesia. This evaluation serves to contextualize the government’s perspective on wage levels in relation to regional counterparts.
Adding to the nuances of this discussion, the Regional Tripartite Wages and Productivity Board recently authorized a ₱50 wage increase, anticipated to benefit approximately 1.2 million minimum wage earners in the National Capital Region. This increase is projected to enhance monthly incomes by about ₱1,100 to ₱1,300. Nevertheless, this measure does not quell the persistent advocacy from labor groups and lawmakers pressing for a more substantial legislated increase.
Proponents of the ₱200 legislated increase contend that the current wage levels remain inadequate when juxtaposed against the ever-increasing cost of living. While acknowledging their concerns, Laguesma expressed caution, particularly regarding the potential adverse impact on micro, small, and medium enterprises (MSMEs). These businesses constitute over 99 percent of the Philippines’ business landscape and employ a staggering 84 percent of the workforce.
“The minimum is a floor wage. If you’re skilled, why would you settle for the minimum?” questioned Laguesma, encapsulating the complex balance the government aims to maintain. This balancing act involves safeguarding worker rights while ensuring businesses can remain operational and competitive in a challenging economic environment.
In terms of historical context, Laguesma remarked that since 1990, more than 85 percent of wage adjustments have been decided by regional wage boards, emphasizing the importance of consultations and local input in the wage-setting process. As discussions around wage concerns are expected to surface in forthcoming labor dialogues, Laguesma hinted that a focus on employment and skills training would dominate President Ferdinand Marcos Jr.’s fourth State of the Nation Address (SONA) on July 28.
“There has been an improvement in the employment situation… and the President recognized the importance of the training-to-employment connection,” Laguesma stated, referencing the impressive 93-percent employment absorption rate under programs administered by the Technical Education and Skills Development Authority (TESDA), which now falls under DOLE’s oversight.
Supporting the claims regarding employment progress, data from the Philippine Statistics Authority revealed that the nation’s employment rate reached 96.1 percent in May 2025, a modest increase from 95.9 percent in the same month of the previous year. This translates to approximately 1.42 million additional individuals entering the workforce.
The ongoing debate surrounding the proposed legislated wage hike demonstrates the complexity of balancing wage growth and business sustainability. As DOLE reiterated, the process of wage-setting must accurately reflect regional economic conditions while prioritizing both labor welfare and the viability of enterprises.
“The President’s SONA? It’s about employment gains and TESDA’s jobs linkage—not just dole-outs,” concluded Laguesma, aiming to shift the narrative towards structural employment solutions rather than temporary financial assistance.