The long-awaited P200 wage increase for workers in the Philippines has still not been passed. With the adjournment of the 19th Congress, the Senate and House failed to agree on a common version of the wage hike bill. As a result, workers were once again left without a wage increase.
According to a study by the Ibon Foundation, there is still a large gap between the current wage and the so-called "humanitarian wage." In Metro Manila, the daily wage for a simple life should be ₱1,217, but the existing minimum wage is only ₱608 to ₱645. In other regions, the required wage ranges from ₱872 to ₱2,030, but workers actually receive even less.
The Senate has already passed a ₱100 wage hike as early as February 2024, while the House approved a ₱200 wage hike in June 2025. If passed, this would have been the first nationwide wage increase since the Wage Rationalization Act of 1989. But according to Senate President Chiz Escudero, this was not a priority for the government and there was also no urgency certification from President Marcos Jr.
Economic managers have stated that the wage hike could potentially cause increase in inflation and unemployment. For example, if the ₱200 wage increase is continued, inflation could potentially increase by 2% and unemployment by 0.6%. They added that most businesses are micro, small and medium enterprises (MSMEs) that may not be able to afford the increased costs.
But the Ibon Foundation strongly objected and said that a ₱200 wage increase is possible and will improve the livelihoods of families. According to their calculations, this is affordable for companies and will not cause a significant drop in profits. They also called on the government to provide subsidies, tax cuts, and other assistance for small businesses. They said the wage increase will help in household spending and in the development of the informal economy.
