First tranche of P85 minimum wage hike to take effect on July 25

MANILA, July 19 ------ The first tranche of the P85 wage hike in Metro Manila will take effect on July 25, Labor Secretary Francis Tolentino said.

It was earlier announced that the wage hike would take effect today but Tolentino said the official announcement had been delayed because of weather disturbances. "Nilipat 'yon kasi na-delay nang 2 araw yung publication date," Tolentino explained. "Kasi nagkaroon na ng bagyo-bagyo," he said.

The labor chief said the wage order takes effect 15 days after its publication in a newspaper of general circulation. The secretary said those who earn more than the minimum wage may also benefit from the wage hike. "Hindi na bababa yung suweldo nila. Magkakaroon lang ng wage distortion. So ang ibig sabihin ng wage distortion ay magkakaroon ng adjustment pataas," he said. "Ito, una, nareresolba itong pag-adjust sa pamamagitan ng collective bargaining agreements (CBA)." "Sa isang kumpanya, may CBA, sila yung nag-uusap. Kung walang CBA, eh direkta na yung employer sa mga empleyado," he explained.

Employees in the business process outsourcing (BPO) sector are among those not directly covered by the wage hike. However, BPO employers may opt to increase salaries to retain their employees. “Yung gap po between minimum wage and higher salary, liliit po. Minsan ina-adjust po yan through CBA, minsan naman po through management’s own discretion. I-adjust po nila yan para ma-retain ang employees. Otherwise, kung hindi masaya ang employees pwede silang lumipat ng ibang companies,” said Atty. Kenneth L. Chua, Member of the Legislative Committee of the IT and Business Process Association of the Philippines (IBPAP).

Tolentino said that employers posted a 95% compliance rate last year following the implementation of the P50 wage hike, and he expects a similarly high compliance rate for the 2026 wage increase. Another P25 wage hike is expected in 2027. Tolentino said consultations on wage hikes are also taking place in regions outside the National Capital Region. "Ang susunod siguro na regions ay 4A, 3, at 7, ‘yung Cebu at Bohol area," he said. He also clarified that the wage hike does not cover micro enterprises and barangay micro business enterprises.

Source: news.abs-cbn.com