By Benjamin Cuaresma
MANILA — Thousands of minimum wage earners across Metro Manila have welcomed the implementation of the long-awaited ₱85 daily wage increase, describing it as much-needed relief amid the soaring cost of living. Employers, however, cautioned that the increase, coupled with looming fuel price hikes, could place additional financial strain on businesses, particularly small enterprises.
The first tranche of the wage adjustment, amounting to ₱60 per day, took effect on July 25, while the remaining ₱25 will be implemented in January 2027.
For many workers, the increase offers hope in meeting everyday expenses.
Working student Lea Mangubat, who supports a family of nine, said the additional income will help cover transportation, meals, and household expenses while she completes her studies.
Barista Christian Castillo likewise welcomed the adjustment, saying it would allow him to save more while helping support his parents, grandmother, and five siblings.
Under the new wage order, the daily minimum wage for workers in Metro Manila’s non-agriculture sector now stands at ₱755, while employees in the agriculture sector, small retail and service establishments, and certain manufacturing firms will receive a minimum of ₱718 per day.
Despite welcoming the increase, Castillo expressed concern that its benefits could quickly disappear if prices of basic commodities continue to climb.
Business owners acknowledged the need to improve workers’ earnings but warned that the timing comes as companies face mounting operational costs.
Coffee shop owner Mark Vasquez said he supports the wage adjustment, recalling his own experience as a former service crew employee. However, he noted that business owners must carefully evaluate whether they can absorb the higher payroll expenses without passing additional costs to consumers.
Vasquez added that the anticipated surge in fuel prices this week could further squeeze business operations, affecting transportation, delivery expenses, and the cost of raw materials.
Industry estimates indicate that diesel prices may increase by as much as ₱7 to ₱8 per liter, gasoline by ₱6 to ₱7, and kerosene by ₱5 to ₱6.
He said his company will monitor the financial impact of the wage hike over the next month before deciding whether operational adjustments—including reducing serving sizes or revising pricing strategies—may become necessary.
The Employers Confederation of the Philippines (ECOP) said it supports the wage increase despite previously recommending a lower adjustment of ₱50 per day.
ECOP President Sergio Ortiz-Luis Jr. warned that micro and small enterprises remain vulnerable to rising labor costs, inflation, and global economic uncertainties, including fluctuating fuel prices and international trade developments.
He cautioned that businesses unable to absorb higher expenses may be forced to reduce their workforce or cease operations altogether.
Meanwhile, Philippine Chamber of Commerce and Industry Chairman Emeritus George Barcelon expressed concern that increasing fuel prices would likely raise transportation and logistics costs, reducing consumers’ purchasing power and slowing overall economic activity.
Business leaders also urged President Ferdinand Marcos Jr. to prioritize economic reforms, investment generation, inflation control, and job creation during his upcoming State of the Nation Address (SONA) instead of focusing heavily on political issues.
The Department of Labor and Employment (DOLE) assured employers that assistance remains available through its Adjustment Measures Program, which provides financial support to qualified micro, small, and medium enterprises (MSMEs) that may face difficulties complying with the new wage order.
While workers celebrate the long-awaited pay increase, both labor and business sectors agree that keeping inflation under control will ultimately determine whether the additional wages translate into meaningful improvements in workers’ quality of life.
ia/xf
