Workers hit staggered wage hike: Why? Do we pay groceries in tranches?

MANILA, Philippines — Labor leaders have questioned the government’s decision to provide the “historic” P85-per-day minimum wage hike in two batches for National Capital Region (NCR) workers, asking whether they should pay for utilities and goods in tranches as well.

In an ambush interview on Tuesday at the Batasang Pambansa complex, Rene Magtubo of the Nagkaisa Labor Coalition said that the P85 wage hike is not enough to cover the rise in the price of basic necessities.

He said this increase has been brought by higher inflation rates, amid the oil crisis due to the Middle East conflict.

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Moreover, Magtubo said the decision to implement the P85 minimum wage hike in two batches — first, P60 by July 19, 2026, and the remaining P25 effective January 2027 — is an added insult as workers do not have the option to pay for power, fares and other goods in installments.

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“The P85 staggered wage order for NCR is an insult and a means to lowball workers when it comes to their salaries. This is not enough to recover the lost purchasing power of the workers’ salaries, brought by inflation,” he said.

“We are not allowed to pay our electric bills in portions. We are not allowed to pay our fares in tranches.  We are also not given the chance to pay for our groceries on an installment basis. That’s why this is both an insult and a lowball,” he explained.

Former Anakpawis lawmaker Ariel Casilao, now national chairperson of the Unyon ng Manggagawa sa Agrikultura, also noted that the minimum wage hike in NCR will not translate to better pay for agricultural workers, since the said industry does not exist in the capital.

“The P85 will not benefit agricultural workers, because there are no agricultural workers in the NCR,” Casilao asked.

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“How will the sugarcane farmers benefit when there are no sugarcane plantations here? No banana plantations. No pineapple plantations in NCR. How will we benefit from that P85?” he asked.

“In the coming days, the regional wage boards for areas with banana, sugarcane and pineapple plantations will not follow P85 because the employers’ representatives will merely say that it’s too big; ‘Let us not follow the NCR’s level,'” he noted.

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Labor leaders were inside the Batasang Pambansa after the House committee on labor and employment invited them for the discussions on the several bills seeking a wage hike.

At least 17 similar measures were tackled during the hearing on Tuesday.

According to Casilao, they support moves for a legislated wage hike, and will continue to push for the measure until it is passed and signed into law.

“That’s why we are one with widespread calls that if the president cannot turn wage increase proposals into a priority bill, the workers will move to ensure that the fight lives on,” he added.

Earlier, Labor Secretary Francis Tolentino announced the increase in the minimum wages of workers based in Metro Manila, marking the largest wage hike ever approved by the NCR’s wage board.

Tolentino said around 1.1 million daily earners are expected to benefit from the “historic” increase.

“For the agricultural sector, service, and retail establishments such as this one, which have 15 or fewer employees, and manufacturing establishments in Metro Manila with fewer than 10 workers, the wage will increase from P658 to P743,” Tolentino said in Filipino.

READ: Dole: ‘Historic’ P85 wage hike set for Metro Manila workers

But for Bukluran ng Manggagawang Pilipino (BMP) president Luke Espiritu, Tolentino’s announcement is only a way to “frustrate” the effort of labor groups to push for legislated wage hikes.

“[BMP] is one with labor organizations under the National Wage Coalition in saying […] that we don’t accept the solution from the Regional Wage Board of NCR which increased wages by P85, and on an installment basis,” Espiritu said.

“This is a clear attempt to match and frustrate the efforts of labor groups to increase wages through legislation. Wages should be increased through the process of the House of Representatives and the Senate of the Philippines,” he added.

During the 19th Congress, lawmakers came close to submitting a final version of a legislated wage hike, as the House approved last June 2025 HB No. 11376 or the proposed Wage Hike for Minimum Wage Workers Act on third reading, while the Senate approved Senate Bill (SB) No. 2534 in February 2024.

However, the House version seeks a P200-per-day hike in the minimum wage, while the Senate bill calls for a P100-per-day increase.

Due to the differences between the bills, a bicameral conference committee should have been convened so that both chambers could reach a final version.

This final version of the bill, contained in a bicameral conference committee report, should be ratified separately by the House and the Senate during a plenary session before it is forwarded to the president for his consideration.

However, in the last week of the 19th Congress’ session, there were reports that the House and the Senate were in a deadlock.

Eventually, the 19th Congress adjourned its session without both the Senate and the House ratifying a final version of the wage hike bill.

READ: 19th Congress ends session without ratifying wage hike bill

Regarding Tolentino, several groups and House lawmakers have urged him to “hit the ground running” in terms of solving problems related to the labor industry.

READ: New DOLE chief Tolentino enjoined to promptly address labor issues

In a statement last May 25, Kamanggagawa party-list Rep. Eli San Fernando — an advocate of wage hike proposals — said that the real battle starts with going against the policies of former Labor Secretary Bienvenido Laguesma. /apl

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