AS PRESSURE mounts for a P200 legislated wage hike, the Department of Labor and Employment (DOLE) insisted that the Philippines’ current minimum wage levels are already among the highest in Southeast Asia.
Labor Secretary Bienvenido Laguesma expects that President Ferdinand Marcos Jr. is more likely to highlight jobs growth in his fourth State of the Nation Address (SONA) today, July 28, than support sweeping across-the-board increases.
“Actually, ‘pag tinignan mo tayo sa ASEAN, mataas na po ang ating minimum [wage],” Laguesma said in a radio interview. “Dapat competitive tayo — hindi sa baba ng sweldo, kundi sa galing ng manggagawa.”
On July 18, the Regional Tripartite Wages and Productivity Board approved a P50 increase in Metro Manila’s minimum wage, raising it from P645 to P695 per day.
This is the highest in the country and among the highest in ASEAN, above Vietnam, Malaysia, Thailand, and Indonesia.
“Ang minimum po ay floor wage. Kung skilled ka, bakit ka tatanggap ng minimum wage?”
The new rate is estimated to benefit 1.2 million workers and translate to about P1,100 to P1,300 more per month, depending on the number of working days.
Lawmakers and labor groups like the Trade Union Congress of the Philippines (TUCP) and Akbayan are demanding a P200 legislated increase, citing how regional wage boards can’t keep pace with soaring living costs.
But Laguesma explained that more than 85 percent of all wage adjustments since 1990 have been initiated voluntarily by these boards — not just in response to petitions.
“We are always walking a tightrope — protecting workers while keeping businesses afloat.”
What to Expect from Marcos’ 4th SONA
Laguesma said President Marcos is expected to highlight labor market improvements rather than direct wage interventions in the upcoming SONA.
“May pagbuti sa kalagayan ng hanapbuhay… at nakita ng Pangulo ang kahalagahan ng training-to-employment connection.”
According to the May 2025 Labor Force Survey by the Philippine Statistics Authority (PSA), the employment rate rose to 96.1%, up from 95.9% in May 2024.
Unemployment dropped to 3.9%, translating to 1.42 million more Filipinos working year-on-year.
The Technical Education and Skills Development Authority (TESDA), now under DOLE again, has played a key role as its job-skills programs yielded a 93% job absorption rate.
“Nag-aaral pa lang, may trabaho na sila… pinupuhunanan na sila pati sa language,” the DOLE chief said.
P200 vs MSME Survival: The Tug-of-War
While progressive groups argue that a national P200 hike is the only meaningful response to inflation, employer groups caution it could cripple micro, small, and medium enterprises (MSMEs), which employ over 84 percent of Filipino workers.
Laguesma reaffirmed DOLE’s stance: region-based wage decisions, grounded in local consultations, are more sustainable.
“Ang SONA ng Pangulo? Employment gains, TESDA jobs link — hindi puro ayuda,” he added. (ABS-CBN News Channel)
