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The clarification comes as the National Capital Region prepares to implement its recently approved P85 daily minimum wage increase in two phases, with the first being on 25 July (Saturday).
The Philippines' Department of Labour and Employment (DOLE) has reaffirmed that minimum wage adjustments will continue to be determined through the country's regional wage-setting system, with increases calibrated according to local economic conditions, workers' needs, and employers' capacity to pay.
Speaking at the Kapihan sa Manila Hotel forum on Wednesday (22 July 2026), Labour Secretary Francis Tolentino (pictured above) said the Regional Tripartite Wages and Productivity Boards (RTWPBs) conduct regular wage reviews under the Wage Rationalisation Act (Republic Act No. 6727), ensuring wage adjustments reflect the economic realities of each region.
The clarification comes as the National Capital Region (NCR) prepares to implement its recently approved P85 daily minimum wage increase in two phases.
The first tranche will take effect on 25 July 2026, followed by the second on 20 January 2027, in line with the wage order issued by the RTWPB-NCR.
According to Secretary Tolentino, the regional wage-setting mechanism is designed to balance workers' purchasing power with businesses' ability to absorb higher labour costs while preserving employment.
He added that wage increases outside NCR will be determined based on the specific economic circumstances and labour market conditions of each region, rather than through a uniform nationwide adjustment.
The Labour Secretary also said the staggered regional approach helps moderate inflationary pressures by preventing businesses across the country from facing higher labour costs simultaneously. Instead, wage orders take effect at different times, spreading any resulting cost adjustments over a longer period.
Addressing concerns over wage distortion – where pay differentials between minimum wage earners and higher-paid employees narrow after a wage hike, Secretary Tolentino said such issues should be resolved through collective bargaining agreements between employers and workers.
To support businesses affected by the increases, he highlighted DOLE's Adjustment Measures Programme, which provides assistance to enterprises facing financial difficulties in complying with wage orders. Eligible businesses may also apply for exemptions from mandated minimum wage increases.
Looking ahead, Secretary Tolentino said DOLE will continue implementing complementary initiatives focused on productivity improvement, employment generation, skills development, and enterprise support to help strengthen both worker welfare and business resilience.
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Lead image / DOLE
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