As inflation rose to its highest level in three years, labor groups are renewing pressure on the government to act on long-pending wage reforms, warning that rising prices are outpacing incomes and straining Filipino households.
The Trade Union Congress of the Philippines (TUCP) reiterated its call for the immediate passage of a P200 legislated daily minimum wage increase, along with tax relief measures for middle-income earners, following the latest inflation data.
According to the Philippine Statistics Authority, inflation accelerated to 7.2 percent in April from 4.1 percent in March, exceeding both the Bangko Sentral ng Pilipinas forecast range of 5.6 to 6.4 percent and the government’s two to four percent target.
TUCP Party-list Representative and House Deputy Speaker Raymond Democrito Mendoza said the surge highlights a widening gap between wages and the cost of living.
He warned that inflation can no longer be treated as a routine economic issue, but as a governance concern requiring urgent policy intervention.
Mendoza urged regional wage boards to act on pending wage hike petitions, citing what he described as a “supervening event” that justifies immediate adjustments to minimum wages.
The TUCP earlier filed House Bill No. 88 at the opening of the 20th Congress in June 2025, proposing a P200 daily wage increase. It also introduced House Bill No. 6740 in December 2025, which seeks to remove the 12 percent value-added tax on electricity amid rising power costs.
In addition, Mendoza authored House Bill No. 8860, or the proposed Patas na Ambag sa Tax para sa Angat-Sahod (PATAS) Act, which aims to expand income tax exemptions for lower middle-income earners and provide broader relief for the middle class.
Data from the PSA shows inflation has hit low-income households hardest, with the bottom 30 percent of families experiencing an 8.5 percent inflation rate in April.
Public sentiment reflects similar concerns. Recent surveys show nearly half of Filipinos consider inflation the country’s most urgent issue, with many identifying wage increases as a top government priority.
Mendoza said the growing financial pressure on households underscores the need for faster legislative action, including possible emergency certification of wage and tax relief measures by the executive branch.
He urged both the House and the Senate to accelerate deliberations on wage increases, electricity tax reforms, and broader tax restructuring, stressing that policy responses must match the scale of the economic strain nationwide.