By Erika Mae P. Sinaking, A reporter
Daily Minimum Wage in Metro Manila will increase to P780 in January 2027 after Tri-State Wages and National Production Board The Capital Region has approved an increase of P85 to be implemented two sections, the Secretary of Labor Francis N. Tolentino announced on Tuesday.
The order provides for a P60 wage increase effective July 19 and another P25 effective January next year, raising the minimum daily wage for non-agricultural workers from P695 to P780.
For agricultural workers and workers in shops, services and small manufacturing establishments under the minimum wage category, the minimum wage will increase from P658 to P743.
The National Capital Region (NCR) wage board did not immediately release a copy of the wage order.
Mr. Tolentino said about 1.1 million low-income people in Metro Manila are expected to benefit from the wage order, while about 1.9 million workers who earn more than the minimum amount may receive wage adjustments due to wage distortions.
Metro Manila workers are getting P658 to P695 a day following the P50 wage hike that took effect on July 18, 2025.
Angelita D. Señorin, a member of the NCR wage board representing the labor sector, told BusinessWorld that the board hadfduly signed and approved the new wage order on June 23.
“The board’s decision is subject to review by the National Wages and Productivity Commission (NWPC),” Ms. Señorin said in a text message. “Yesterday, I was informed that the decision of the board was confirmed by the NWPC.”
This P85 total increase is historically significant, as it represents a larger adjustment than the P50 increase made last year.
The determination of minimum wages in the Philippines is governed by Republic Act No. 6727, where regional wage boards are authorized to periodically review and adjust the minimum wage based on regional economic factors such as cost of living, inflation, and poverty threshold.
Data from the Philippine Statistics Authority showed the inflation rate in the NCR dropped to 5% in May from 5.5% in April. However, there is still more faster than 1.7% in May last year.
Meanwhile, the unemployment rate in the region was recorded at 5.2% in April, higher than the national average of 4.7%. This placed Metro Manila among the six regions with unemployment figures exceeding the national baseline.
Ms. Señorin said that while any adjustment is welcome, the P85 increase remains insufficient because it is still far below the real cost of living in Metro Manila and serves as a temporary measure amid the continued rise in the prices of basic goods, electricity and transportation.
“In all wage negotiations, my position is clear that at least the minimum request filed before the wage board, which is P200, should be met,” he said. in mixed English and Filipino.
“In my opinion, no sector will be affected by the increase of this because it is very small to begin with, and small and medium businesses have many solutions and subsidies provided by the government that they can get,” he added.
Benjamin B. Velasco, an assistant professor at the University of the Philippines Diliman School of Labor and Industrial Relations, said the wage board seems balanced by giving a big increase while using it in two stages, although labor groups may criticize this method of rotation instead of a one-time adjustment.
“The impact will be seen in the legal sector which is covered by the relationship between the workers and the employer,” he said BusinessWorld in a Facebook chat. “But because of the lighthouse effect, eventually even informal workers will benefit as MSMEs (micro, small and medium enterprises) adapt.”
“Even if they like businesses, they cannot always raise wages as prices are rising as they are under market competition,” he said.
George T. Barcelon, chairman of the Philippine Chamber of Commerce and Industry, said the wage hike comes at a time when businesses continue to face challenges from the weak peso, high interest rates, and persistent risks of inflation.
He said the P85 adjustment, which is equivalent to an increase of about 13% to 14% in the minimum wage, may be difficult for some companies, especially micro, small and medium enterprises that already operate on thin margins.
“It may be necessary to review the salary structure of some companies because this increase may already depend a lot on the structure of the companies” where the existing salaries may be exceeded, he said. BusinessWorld by phone.
Mr. Barcelon said the companies have no choice but to pass on the costs of wage increases, which may affect inflationtion.
He said that while the rate hike would not be quick, businesses would eventually feel the “devastation” of higher labor costs, warning that such rate hikes meaningwell the expansion may disrupt the economy.
