Tolentino: Disruptions over P85 wage hike in NCR are ‘minimal’

Labor Secretary Francis Tolentino. (Photo from the Department of Labor and Employment / Facebook) MANILA, Philippines — Labor Secretary Francis Tolentino maintained that disruptions from the implementation of the P85 daily wage hike in the National Capital Region (NCR) are “minimal” amid concerns over a possible “wage-price spiral.” The P60 first tranche is set to take effect on July 25, while the P25 second tranche will be implemented in January 2027 under Wage Order No. 27, according to the Department of Labor and Employment (Dole). READ: Dole: No delay, no postponement of P85 wage hike for NCR Article continues after this advertisement READ: Dole: ‘Historic’ P85 wage hike set for Metro Manila workers The Foundation for Economic Freedom on Monday called for the suspension of the wage order, describing its issuance as “abrupt” and saying it could “trigger severe unintended consequences.” Tolentino said the overall impact of the wage hike is much greater, with over 1.1 million workers in the NCR expected to benefit. “The disruptions are very minimal, but the overall impact is greater. 1.1 million (workers) will benefit immediately starting July 25. The disruptions are only about 12,000,” Tolentino said in Filipino during the Kapihan sa Manila Hotel session on Wednesday. He also said wage distortion is more worrisome because the adjustments to the salaries of workers earning above the minimum wage will be between management and employees. Article continues after this advertisement “My concern is wage distortion. Wage distortion refers to rates higher than the basic (minimum wage) that also need to be adjusted. That is a matter for the employer to discuss,” he explained. Meanwhile, struggling employers can apply for Dole’s Adjustment Measures Program, which provides financial assistance to micro, small and medium-sized enterprises, labor groups, and displaced workers. Enterprises can also apply for an exemption from the mandated minimum wage hike, Tolentino said. Article continues after this advertisement “Secondly, those facing genuine hardship can file for an exemption. And perhaps a third way we can help—through our Employees’ Compensation Commission—is by ensuring the provision of appropriate monetary benefits,” Tolentino said in Filipino. The Regional Tripartite Wages and Productivity Boards regularly review wage levels in their respective regions in accordance with the Wage Rationalization Act, Tolentino reiterated. Your subscription could not be saved. Please try again. Your subscription has been successful. “Inflation is not only caused by labor cost; there are many factors. What this wage hike would provide is the immediate cushion and impact on real wages and the purchasing power of the worker to provide for his/her family,” he added. /mcm