Philippines sets record pay hike for Manila workers on inflation
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A trade union said the hike is inadequate in the face of inflation faced by the Philippines.
PHOTO: REUTERS
Workers in the Philippine capital will see their wages rise by a record 12 per cent, Labour Secretary Francis Tolentino said on June 30.
Over 1.1 million minimum wage earners in Metro Manila will receive a pay increase of 85 pesos (S$1.79) a day, the “largest single wage adjustment ever granted in the capital region”, according to the labour department.
The increase will be made in two tranches, specifically 60 pesos on July 19 and 25 pesos in January 2027, it said.
Once the increase is fully enforced, daily minimum wage will have risen by 12 per cent to 780 pesos for non-agriculture sectors.
Salaries will increase by 13 per cent to 743 pesos for agriculture, service and retail establishments employing 15 workers or less, as well as for manufacturing establishments with less than 10 workers.
The Trade Union Congress of the Philippines said the increase is “grossly inadequate in the face of the collapse in workers’ purchasing power”, criticising the government for the two-tranche pay hike.
The wage increase comes as inflation in the South-east Asian nation eased to 6.8 per cent in May after hitting a three-year high of 7.2 per cent in April.
It remains well above the central bank’s 4 per cent tolerance ceiling. BLOOMBERG
