A fair and data-driven approach must guide discussions on nationwide wage hike proposals to safeguard worker welfare while preserving economic stability, the Department of Labor and Employment (DOLE) said.

DOLE Secretary Bienvenido Laguesma said the department has submitted technical inputs to Congress and underscored the need for sustained dialogue among labor, employer, and government sectors amid calls for a P200 across-the-board increase in the daily minimum wage.

President Ferdinand Marcos Jr., in his Labor Day message, echoed this position, urging a calibrated and comprehensive review of wage proposals to ensure long-term benefits without compromising jobs and investments.

Business groups have raised concerns that a uniform wage hike could strain micro, small, and medium enterprises (MSMEs), which account for over 99 percent of businesses nationwide, potentially resulting in layoffs or higher prices for consumers.

Laguesma reiterated that wage-setting authority rests with the Regional Tripartite Wages and Productivity Boards (RTWPBs), which assess inflation, cost of living, and employers’ capacity to pay.

He noted that while Congress may enact wage legislation, the executive branch provides technical support and policy insights to inform deliberations.

“As part of the executive, we provide technical support and act as resource persons. Whether our recommendations are adopted or not, we respect the legislative process,” Laguesma said.

Independent think tank Ibon Foundation maintained that the call for higher wages is rooted in equity, citing the growing gap between workers’ earnings and corporate profits.

The group emphasized that wages have failed to keep pace with the rising cost of living, calling for policies that ensure a fairer distribution of economic gains.

Alongside wage discussions, DOLE continues to expand programs for low-income and vulnerable workers, including employment facilitation, skills development, and social protection services.

Wage determination in the country is governed by Republic Act No. 6727, or the Wage Rationalization Act, which empowers RTWPBs to set region-specific wage levels based on prevailing economic conditions.

As of May 2025, the National Capital Region (NCR) retains the highest minimum daily wage at P645, following a P35 increase under Wage Order No. NCR-25 was issued in July 2024.

Wage petitions remain pending in several regions, with labor groups urging the government to align wage policies with the actual cost of living and promote dignified employment.