DOLE: Small businesses considered in P85 wage hike for NCR workers

Small business owners were considered in deciding to implement in two-tranches the P85 daily wage increase for minimum wage workers in Metro Manila, the Department of Labor said Wednesday.

"You cannot please everybody. Ang atin namang ikinokonsidera din diyan ay ‘yung ating maliliit na negosyante na hindi naman sila mabigla rin. So, nagkaroon ng 2 tranches dito," DOLE Secretary Francis Tolentino told Super Radyo dzBB.

(You cannot please everybody. We considered the small businesses who cannot implement the minimum wage increase in one go. So, we implement the two tranches.)

Tolentino announced on Tuesday that the first tranche of the increase at P60 will take place on July 19, 2026, while the remaining P25 will be in effect on January 20, 2027.

He also denied comments saying that the announcement of the wage hike was timed with the protest led by members of the Iglesia ni Cristo, who questioned the possible filing of plunder charges against Senator Rodante Marcoleta.

"Ang haba ng naging proseso nito... June 23," Tolentino said.

(The process took a long. "It was signed on June 23.)

Tolentino further said the wage hike would increase the productivity of workers and will make positive corresponding adjustments in businesses.

"Talagang ‘yung living wage ang ikinonsidera rito kasi lumiit ‘yung halaga nung real wages natin. Nawalan ng purchasing kumbaga ‘yung ating mga manggagawa, nabawasan ‘yung halaga ng kanilang kinikita," the Labor secretary said.

Dissent

Sergio Ortiz-Luis Jr., president of the Employers Confederation of the Philippines (ECOP), objected to DOLE’s wage increase, noting that some business owners cannot afford it.

"For the first time, nag-dissent kami doon sa ₱85 (wage hike). Masyadong malaki," Ortiz-Luis said in a separate dzBB interview.

(For the first time, we dissent to the P85 wage hike. It's too high.)

"Maraming micro hindi kaya (shoulder P85 minimum wage hike) ‘yan," he added.

(Many are micro-business owners who cannot shoulder the P85 minimum wage hike.)

However, Ortiz-Luis, who is also Philippine Chamber of Commerce and Industry chairman emeritus, said business owners will follow DOLE's mandate.

"Gusto lang namin liwanagin, nirerespeto namin ‘yung desisyon ng ano. While we dissented, kapag in-implement eh susunod kami," he said.

(We want to clarify that we respect the decision. While we dissented, we follow once it is implemented.)

Consumers

Meanwhile, for Sonny Africa, executive director of IBON Foundation, the P85 minimum wage hike remains "lacking."

"Kulang na kulang actually ‘yung ibinigay na sahod. Mas malaki pa sana ‘yung dapat ibinigay nila at mas malaki pa sana actually ‘yung kaya nilang ibigay," Africa said.

(The wage increase that was given is actually far from enough. They should have provided a much higher amount, and they could have afforded to give more.)

"Pero para sa amin, hindi masyadong dapat palakihin kasi ibig sabihin din, ganoong kaliit ‘yung pagtaas nitong nakaraang halos apat na dekada," he added.

(But for us, it should not be increased too much because it also means that the increase over the past nearly four decades has been that small.)

He also believed that the consumers should not shoulder the wage increase.

"Kinompute namin actually ‘yung impact ng ₱85 kahit ibigay ng isang bagsak. Alam niyo ba, on average, 5% lamang siya ng tubo ng mga negosyo. So, sa amin, hindi ito kailangang ipasa sa consumer tulad nung binanggit kanina," Africa said.

(We actually computed the impact of the ₱85 increase, even if it is given in one tranche. Do you know that, on average, it only accounts for 5% of businesses’ profits? So, for us, this does not need to be passed on to consumers, unlike what was mentioned earlier.) —Mariel Celine Serquina/ VAL, GMA News