Bill mandating P200 wage hike passed in the Philippines
- Josephine Tan
The Philippine House of Representatives approved on final reading House Bill 11376, a proposed law mandating a P200 (US$3.59) across-the-board daily wage increase. The bill passed with overwhelming support, garnering 171 votes in favour, one against, and no abstentions.
If enacted, the bill would raise the current daily minimum wage from P645 (US$11.59) to P845 (US$15.18), affecting employees nationwide regardless of industry or region. This represents the first legislated wage hike passed by Congress since 1989 and has stirred both celebration and concern within the broader business and labour communities.
The measure has been championed by the Trade Union Congress of the Philippines (TUCP), with House Deputy Speaker Democrito Mendoza, representing TUCP, presiding over the session’s final approval. TUCP and other labour groups argue that an across-the-board increase is long overdue amid rising inflation and stagnant wages.
While the vote was met with applause from progressive lawmakers and labour advocates, business groups have raised red flags. President Ferdinand Marcos Jr. has expressed reservations about the bill, citing concerns from employers that a legislated wage hike could force small and medium-sized enterprises—the backbone of the Philippine economy—to downsize or shut down entirely.
Currently, wage adjustments are made through regional tripartite wage boards, a mechanism long favoured by employers for its flexibility in accommodating regional economic conditions. The proposed law would bypass this structure, implementing a uniform wage hike nationwide.
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Critics have labelled the bill as populist and economically risky. Some warn that the mandated increase could exacerbate business challenges amid a still-recovering post-pandemic economy. Business groups are expected to lobby the Senate heavily as the bill moves to the next legislative stage.
Labour groups, while welcoming the development, have also expressed that the P200 increase falls short of their ultimate demands. Jerome Adonis, Secretary General of the progressive group Kilusang Mayo Uno (KMU), called on President Marcos to sign the bill into law, though he noted it “falls short of the P1,200 (US$21.56) daily minimum we are pushing for.” Adonis further criticised the perceived “failure and inutility of the wage boards,” highlighting a deep-seated frustration within labour circles regarding the current wage adjustment system, reported Philstar.
