Historic wage hike not enough, govt should hike more – Labor NGO

June 30, 2026

Historic, but not enough.

This was the reaction of a labor NGO to Labor Secretary Francis Tolentino’s announcement of an P85 wage hike for Metro Manila, which is historically the highest increase in the region, as it said the increase in workers’ cost of living is also historic.

The Center for Trade Union and Human Rights (CTUHR) also said that the announcement shows that even the government recognizes the need for unusual measures so that workers can cope with the rising cost of living and should encourage workers to call for bigger increases.

“Ano ba iyan? Sinabi ngang historic, hindi naman itinodo. Two gives pa! The historic wage hike is no match to the historic increases in workers’ cost of living. The government should further increase wages,” said Kamz Deligente, CTUHR executive director.

Deligente said that the P85 wage hike, P60 of which will be effectve in July and P25 of which will be effective in January 2027, is not an adequate adjustment to workers’ cost of living. She cited independent think-tank Ibon Foundation’s research that shows that the Family Living Wage has reached P1,312 in April, the highest in years.

“No doubt, the government was forced to package this wage hike as historic because of workers’ intense and loud clamor. Left to itself, the government will just obey employers’ dictates. Workers can gain more if they demand more, as the justness of their demand has become undeniable,” Deligente added.

CTUHR also said that the announcement of the wage hike, while possibly signalling similar historic wage hikes in regions outside Metro Manila, was calculated to pre-empt the Metro Manila regional wage board’s decision on petitions for a new minimum wage of between P1,200 and P1,500 per day.

“The government is feeling the heat of workers’ assertion of their right to a living wage. Aside from the fact that the current cost of living crisis is affecting them harshly, workers know that their wages have not kept up with the increase in employers’ profits and in their productivity through the years,” Deligente added.

Deligente cited Ibon Foundation’s research showing that workers’ productivity has increased by 104%, while workers’ real wages have fallen by 14%, in the period 1989-2025. Furthermore, the net income of the top 1,000 corporations increased by 104% and the net income of all establishments increased by 59%, while workers’ wages increased by a mere 11% in the period 2020-2022.

“If the Marcos Jr government thinks that because of this historic wage hike, workers’ clamor for a living wage will die down, then it is sorely mistaken. We have every reason to believe that workers, led by the labor movement, will seize the initiative and intensify efforts to demand a living wage,” Deligente stated.