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Manila Bulletin devider Business devider The Economy devider Employers: Ditch Congress, let wage boards handle pay hikes

Employers: Ditch Congress, let wage boards handle pay hikes

Published Jun 23, 2025 12:00 am  |  Updated Jun 21, 2025 03:08 pm
(Manila Bulletin file photo)
(Manila Bulletin file photo)
The country’s leading group of employers said all future salary adjustments should be overseen solely by the regional wage boards, rather than through legislation that was recently left unapproved by Congress.
“The regional wage board is not perfect, but that is the most objective and thoughtful way to do [wage hikes],” said Employers Confederation of the Philippines (ECOP) President Sergio Ortiz-Luis Jr.
Ortiz-Luis issued the statement following the 19th Congress’ failure to convene as a bicameral conference committee to reconcile the two chambers’ versions of wage hike bills.
The Senate approved the bill granting a ₱100 across-the-board wage hike for workers in the private sector last year, while the House of Representatives approved the ₱200 early this month.
If it had been approved, it would have been the first time a legislated wage hike was enacted since 1989.
Moving forward, Ortiz-Luis said he will be opposed to future wage hike measures as he sees no need for Congress to pursue such adjustments.
“As long as the proposal made no sense, did not undergo study by the wage experts, and was based on either politics or emotions, the group [will not be] amenable to it,” he said.
The ECOP official said wage boards already comprise key representatives from the private, public and labor sectors which undertake annual reviews of salaries in every region.
The regional wage boards were specifically established to determine and set region-specific rates based on the local cost of living.
Ortiz-Luis noted that employers sometimes disagree with the wage board’s decision but they nonetheless support its moves.
While he acknowledged that these boards do not typically approve substantial hikes, the initial request will eventually be met through steady increases.
“From having the lowest minimum wage in ASEAN, through the year-by-year increases, we now have the highest,” he pointed out.
Ortiz-Luis warns that if a legislative wage hike gets the president’s approval, it would impact at least 98 percent of the industries in the country.
He added that it would only affect 10 to 16 percent of the 52 million workers in the country, leaving out the majority of the workers who are under the informal sector.

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