Not all pro-workers groups in the House of Representatives saw the Department of Labor and Employment (DOLE) announcement of a P85 daily minimum wage increase for private sector workers in Metro Manila as a negative.

Trabaho Party-list, represented by Cong. Johanne Bautista in the 20th Congress, went as far as to call it a "milestone".

Still, it's a milestone that could use a boost from Congress in the form of House Bill (HB) No. 4431, or the proposed WAGE Bill authored by Bautista.

DOLE Secretary Francis Tolentino announced that the first tranche of the increase, amounting to P60, will take effect on July 19, 2026, while the remaining P25 will take effect on Jan. 20, 2027.

"This wage increase is an important milestone, but it should be the beginning, not the end, of broader labor reforms," lawyer-lawmaker Bautista said.

"By protecting workers' incomes while supporting the businesses that generate jobs, we can build an economy where growth is shared and every Filipino worker has the opportunity to achieve lasting financial security," she noted.

The WAGE Bill seeks to complement wage increases by raising the tax-free income threshold to at least P400,000 annually, expanding non-taxable employee benefits, and providing tax incentives for micro, small, and medium enterprises (MSMEs).

Bautista explained that tax reforms proposed under the WAGE Bill would allow workers to keep more of what they earn while helping businesses absorb higher labor costs, expand operations, and create more quality jobs.

She also remarked the National Capital Region (NCR) wage hike as an important victory for Filipino labor.

The rookie solon acknowledged that the wage hike provides much-needed relief for Filipino families struggling with the rising cost of basic goods, but at the same time stressed that wage hikes alone were not enough to deliver lasting financial security.

In a radio interview, tax expert and reform advocate Mon Abrea said he expects President Marcos to announce income tax relief measures in his State of the Nation Address (SONA) later this month

Abrea disclosed that Executive Secretary Ralph Recto personally told him that the income tax relief proposal and its specific provisions are being studied, including the possible exemption of overtime pay from income tax. He added that the measure would directly benefit millions of Filipino workers who lose a significant portion of their extra earnings to taxes.

Management Association of the Philippines president Donald Lim said businesses will comply with the new order, even as he noted that “Many MSMEs will face additional cost pressures that could affect hiring, expansion, and pricing decisions.”

Lim added that “focus should now be on helping both workers and businesses by improving the ease of doing business, lowering logistics and energy costs, investing in skills and technology, and creating an environment where wage growth is driven by productivity rather than mandated increases alone.”

On the other hand, Sergio Ortiz-Luis Jr., president of the Employers Confederation of the Philippines, opposed the wage increase, saying some businesses would struggle to afford the additional costs.