Increase in salaries halted altogether
Lawmakers Push for P200 Minimum Wage Hike in the Philippines
A potential shake-up is looming for the private sector employees in the Philippines as the proposed P200 minimum wage hike gains traction.
In a recent interview, attorney Randolf Pensoy, regional director of the Department of Labor and Employment (DOLE)-Davao, hinted at the possibility of the new wage order issued by Congress taking precedence over the one determined by the Regional Tripartite Wages and Productivity Board (RTWPB).
"If Congress approves [the wage hike], that's the only thing we can do," Pensoy told reporters during a Kapehan sa Dabaw session, Monday, June 11, 2025, in SM City Davao.
The potential increase could translate to an additional P29 to the RTWPB's proposed P29 daily wage increase for workers in the private sector as outlined in Wage Order No. RB XI-23, approved by RTWPB on March 7, 2025. This increase would push up the minimum wage for non-agricultural workers to P510 and P505 for those in the agricultural sector.
The wage hike bill, House Bill 11376, was approved by the House of Representatives on June 4, 2025, with 171 yes votes, zero no votes, and one abstention. The Senate is now considering the bill. Once passed by the Senate and signed into law, the DOLE will be responsible for implementing the P200 daily wage hike across the nation.
Interestingly, this potential wage hike could mark the first nationwide increase in minimum wage since the Wage Rationalization Act of 1989.
President Ferdinand "Bongbong" Marcos Jr. weighed in on the potential implications of the wage hike on June 5, 2025, expressing optimism about the impact on the economy. He assured that the government would ensure a balance between the welfare of workers and economic stability.
If the wage hike were to take effect, Pensoy suggests that it could potentially lead to "terminations, reductions, or retrenchments, perhaps even closures of employment." However, Pensoy also states that while the impact might not be massive, it could potentially boost workers' purchasing power.
As a member of the RTWPB, Pensoy expressed mixed feelings about the situation: uncertainty and anticipation. (Rojean Grace G. Patumbon)
- The proposed P200 minimum wage hike in the Philippines, if approved, could have significant implications for businesses in Davao city, potentially leading to employment changes due to financial constraints.
- The potential nationwide minimum wage increase, triggered by House Bill 11376, could influence the political landscape, especially when it comes to discussions about economic stability and general news related to business and finance.
