The Department of Labor and Employment (DOLE) ruled out the urgency of a legislated ₱200 across-the-board wage hike, as the Philippines already holds one of the highest minimum wage rates in Southeast Asia.

DOLE Secretary Bienvenido Laguesma emphasized that regional wage boards remain the appropriate mechanism for setting minimum pay, serving as “floor” rates for entry-level or unskilled workers.

“Actually, if you look at us in the ASEAN region, our minimum wage is already high,” he said, citing Metro Manila’s newly approved daily minimum wage of ₱695, which exceeds those in Vietnam, Malaysia, Thailand, and Indonesia.

The ₱50 wage increase approved by the Regional Tripartite Wages and Productivity Board on July 18 is expected to benefit about 1.2 million minimum wage earners in the National Capital Region, adding roughly ₱1,100 to ₱1,300 to their monthly income.

However, labor groups and lawmakers continue to push for a legislated ₱200 increase, arguing that the current rate remains inadequate in the face of rising living costs.

Laguesma cautioned that a nationwide wage hike may strain micro, small, and medium enterprises (MSMEs), which make up over 99 percent of businesses and employ more than 84 percent of the workforce.

“The minimum is a floor wage. If you're skilled, why would you settle for the minimum?” he said. “We are always walking a tightrope—protecting workers while keeping businesses afloat.”

He noted that since 1990, more than 85 percent of wage adjustments have been determined by regional wage boards through consultations.

While wage concerns are likely to be raised in upcoming labor dialogues, Laguesma said President Ferdinand Marcos Jr. is expected to focus on employment and skills training in his fourth State of the Nation Address (SONA) on July 28.

“There has been an improvement in the employment situation… and the President recognized the importance of the training-to-employment connection,” he said, referring to the 93-percent employment absorption rate under TESDA programs, now under DOLE’s supervision.

According to the Philippine Statistics Authority, the country’s employment rate rose to 96.1 percent in May 2025, up from 95.9 percent in the same month last year—equivalent to 1.42 million additional employed Filipinos.

Amid persistent calls for a legislated wage hike, DOLE reiterated that wage-setting must reflect regional economic conditions while supporting both worker welfare and enterprise viability.

“The President’s SONA? It’s about employment gains and TESDA’s jobs linkage—not just dole-outs,” Laguesma said.