By Tracy Cabrera
DILIMAN, Quezon City — Amid soaring prices of prime commodities triggered by the prevailing energy crisis, Department of Economy, Planning and Development (DEPDev) Secretary Arsenio Balisacan warned against plans for an across-the-board wage hike, stressing that wage adjustments should continue to be determined at the regional level.
In a statement, the socioeconomic planning chief said caution is needed. “We would want all the parties to discuss and agree, particularly between labor and management, with the government also facilitating that process,” he said.
At the same time, Balisacan reiterated the government’s position that salary increases should be set at the local level, or at least the regional level, through regional wage boards.
Under Republic Act (RA) 6727, minimum wages are determined by regional tripartite wage boards composed of labor, employer, and government representatives. Lawmakers abandoned the previous practice of legislating wages in 1989, with proponents of the shift arguing that regional adjustments better reflect varying economic conditions across the country.
Earlier this week, several labor organizations urged President Ferdinand “Bongbong” Marcos Jr. to suspend or scrap fuel taxes and push for wage increases, citing the continued rise in oil prices and the resulting burden on workers due to higher costs of food and basic goods.
The labor groups likewise called on the Chief Executive to use the government’s authority under Republic Act (RA) 12316 to expand tax relief measures, including cutting or suspending excise taxes and value-added tax on fuel.
“These measures, alongside higher wages, are needed to ease the impact of inflation and protect workers’ purchasing power,” they said.
However, Balisacan pushed back against the call, reiterating that differences in cost of living, business conditions, and labor market dynamics across regions make a uniform nationwide wage increase impractical.
“While Metro Manila faces significantly higher living costs, other regions operate under different economic realities. Applying a single minimum wage rate across all regions could create distortions, particularly in areas where businesses operate on thinner margins,” he said.
He warned that imposing a nationwide wage hike could have unintended consequences for regional economies, including reduced investment inflows and weaker job creation.
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