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The Philippines’ labour department has issued new guidelines to strengthen wage order implementation, monitoring, and enforcement, while helping MSMEs comply with mandated pay increases.
The Department of Labour and Employment (DOLE) is stepping up efforts to ensure workers receive wage increases mandated under approved wage orders, while giving covered businesses, particularly micro, small and medium enterprises (MSMEs), mechanisms to support compliance.
The measures are set out in Administrative Order (AO) No. 264, Series of 2026, released on 10 August and signed by Secretary Francis N. Tolentino. The order provides guidance to DOLE Regional Offices and Regional Tripartite Wages and Productivity Boards (RTWPBs) on compliance with wage orders under Articles 122, 123, 124, 126 and 128 of the Labor Code of the Philippines, as amended.
The issuance is said to support President Ferdinand R. Marcos Jr.’s commitment to protecting workers’ rights and promoting fair and decent wages, while ensuring businesses are given appropriate mechanisms to meet wage regulations.
Wage orders to take effect 15 days after publication
Under the AO, DOLE Regional Offices and RTWPBs are tasked with ensuring that approved wage orders become effective and immediately executory 15 calendar days after their complete publication in a newspaper of general circulation.
The National Wages and Productivity Commission (NWPC) and RTWPBs are also directed to continuously monitor wage order implementation and compliance within their respective jurisdictions through the labour inspectorate system.
This means regional wage boards and DOLE offices will have a continued role in checking whether covered establishments are implementing the required wage increases.
MSMEs to get support on wage exemptions
The new guidelines also set out measures to support MSMEs and other establishments covered by wage order exemptions. RTWPBs have been directed to simplify the mechanisms for establishments applying for exemptions within the prescribed 75-calendar-day period from the publication of a wage order, in line with NWPC rules.
The move is intended to provide a clearer process for eligible establishments while ensuring exemption requests continue to follow the relevant requirements.
Compliance orders for wage deficiencies
The AO also strengthens coordination between RTWPBs and DOLE Regional Offices to support enforcement and verify the implementation of wage increases.
Where wage deficiencies are found, compliance orders will be issued to establishments under Article 128 of the Labor Code.
Secretary Tolentino also stressed that social dialogue will remain part of the wage-setting process. Consultations among labour, management and government stakeholders are to continue even after a wage order has been issued, keeping the different parties involved in discussions around wage implementation.
RTWPBs to submit wage order progress reports
RTWPBs will also face additional reporting requirements under the new guidelines.
They are required to submit implementation and exemption progress reports to the NWPC within 30 calendar days following the effectivity of a wage order.
A comprehensive Policy and Impact Assessment Report must also be submitted to the Office of the Secretary. It will cover wage order coverage and exemptions, as well as an analysis of probable effects on regional inflation and potential policy recommendations.
These assessments are intended to provide information that can guide subsequent regional wage-fixing cycles.
Lead image / DOLE
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