Palace defends Marcos, Recto: Wage hike, VAT removal are Congress’ duty

MANILA, Philippines — Malacañang on Tuesday defended the administration against criticisms from a lawmaker who accused Executive Secretary Ralph Recto of obstructing labor-related reforms and claimed that no labor-related legislation had been enacted under President Ferdinand Marcos Jr.

In a briefing in Kazan, Russia, Palace press officer Claire Castro rejected accusations made by Kamanggagawa party-list Rep. Eli San Fernando, who described Recto as a “salot” (scourge) to workers and ordinary Filipinos for allegedly blocking proposals to abolish provincial wage rates and remove value-added tax (VAT).

“The President and the administration are carrying out their duties in accordance with the law and only within the scope of their authority,” Castro said.

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READ: Employers push tax cuts, not wage hikes, on Labor Day

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Marcos is set to arrive on Wednesday (Philippine time) in Kazan to attend the commemorative summit between the Association of Southeast Asian Nations (Asean) and Russia, and a bilateral meeting with Russian President Vladimir Putin.

She cited wage adjustments in Northern Mindanao and Caraga that took effect on Labor Day, May 1, as well as an earlier increase in wages in Central Luzon implemented on April 16.

According to Castro, the salary adjustments were implemented through the Department of Labor and Employment (DOLE) and the Regional Tripartite Wages and Productivity Boards, which are tasked with monitoring and determining appropriate wage levels in the regions.

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She also disputed San Fernando’s claim that President Marcos had failed to advance labor legislation, arguing that setting a national minimum wage through legislation falls under Congress’ authority.

“The claim that no proposals have been made regarding a national minimum wage is misplaced because this is not the President’s responsibility—this is the responsibility of lawmakers,” Castro said.

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The Malacañang official stressed that lawmakers, such as San Fernando, should not shift responsibility for legislative matters to the executive branch.

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“If you believe a higher minimum wage should be implemented, that is your mandate. Any shortcomings in carrying out your duties as lawmakers should not be passed on to the executive branch or to the President,” she said.

The Palace official also denied allegations linking Recto to efforts to prevent the removal of VAT, saying such policy matters are not solely within the authority of the Executive Secretary.

Castro noted that economic managers may only provide recommendations, but policy decisions on taxation ultimately rest with Congress.

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According to Castro, critics should first examine the role of VAT in funding government programs before considering proposals to remove it. /cb