A fresh round of minimum wage increases could begin as early as June, as House Minority Leader Marcelino Libanan said rising fuel costs and inflationary pressures are pushing regional wage boards to act.
Libanan said the country’s 17 wage-setting bodies are expected to implement adjustments amid the economic impact of elevated oil prices linked to ongoing Middle East tensions, which have driven up transport and basic commodity costs.
“There’s no question that a new round of regional wage hikes is now fully justified,” he said, noting that higher fuel prices have intensified inflation and reduced workers’ purchasing power.
The lawmaker underscored the need to restore the real income of around 5.2 million minimum wage earners, warning that persistent price increases have eroded earnings despite previous pay hikes.
“We have to restore the lost buying power of workers if we want to sustain consumption and support the broader economy,” Libanan said.
He said the Regional Tripartite Wages and Productivity Board in the National Capital Region is expected to lead the next round of adjustments. The NCR board last approved a P50 daily wage increase in June 2025, raising the minimum wage from P645 to P695 effective July that year.
Regional wage boards typically follow Metro Manila’s lead, implementing similar increases over time. Current rules allow adjustments once every 12 months, unless exceptional conditions warrant earlier action.
Libanan added that wage hikes often trigger adjustments within companies to address “wage distortions,” or the narrowing gap between entry-level and more senior positions.
Recent data has reinforced calls for wage increases. Inflation rose to 4.1 percent in March, the highest in 20 months, driven largely by a 9.9-percent surge in transport costs due to fuel price shocks, along with higher food prices.
The Bangko Sentral ng Pilipinas has also warned of rising inflation risks, citing the continued impact of global oil and fertilizer prices on domestic costs.
With these pressures mounting, Libanan said timely wage adjustments are needed to prevent further erosion of workers’ incomes and help sustain economic activity.