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The Department of Labor and Employment announced this week the approval of an P85 increase for minimum wage workers in Metro Manila.
Around 1.1 million minimum wage earners are set to benefit from the daily increase, which will be given in two tranches through January 2027.
The first tranche of the increase at P60 will take place on July 19, 2026, while the remaining P25 will be in effect on January 20, 2027.
Non-agricultural workers earning P695 per day will have their wages increased to P780, while agricultural workers will have their wages increased to P743 from P685.
Labor Secretary Francis Tolentino said the increase is the largest single daily minimum wage adjustment approved for private sector workers in Metro Manila.
Last year, Metro Manila workers got a P50 wage hike.
Tolentino said the wage board considered several factors for granting the increase, including inflation, rising electricity prices, high cost of goods, and to give workers a decent standard of living.
But several labor groups said that if inflation were to be the basis, the wage increase should have been higher.
Is the P85 daily wage increase sufficient for a family of five?
The Kilusang Mayo Uno said prices of petroleum products have spiralled several times, this was followed by the hike in electricity rates and the cost of goods.
The group is pushing for a P1,200 national daily wage.
The P780 minimum wage announced by DOLE is far from the P1,305 daily wage needed by a family to survive.
“Lubhang hindi sapat kumpara sa ilang ulit na pagtaas ng presyo ng langis, singil sa kuryente, at iba pang gastusin. Itataas lamang ng P85 dagdag-sahod ang minimum sa NCR mula sa P695 tungong P780 – malayo sa P1305 na halagang nakakabuhay,” KMU said.
(It is grossly inadequate compared to the repeated increases in fuel prices, electricity rates, and other living expenses. The P85 wage hike will raise the minimum daily wage in the National Capital Region (NCR) from P695 to just P780—still far below the P1,305 living wage needed to provide for a family’s basic needs.)
According to the IBON Foundation, as of May 2026, a family of five members in Metro Manila needs at least P1,279 to live decently.
As of April 2026, it said a family spends P554 daily on food; P88 on water, electricity, and gas; P68 on transportation; P43 on miscellaneous expenses; and P28 on school needs.
IBON said the current P780 daily minimum wage is no longer enough just for these needs.
Based on Philippine Statistics Authority (PSA) data, in 2023, NCR had the biggest average annual family expenditure.
This reached P385,050 in a year or P1,054 per day.
In a hearing by the House Committee on Labor and Employment, several labor groups and lawmakers called for a P200 to P1,200 daily wage hike.
Human rights watchdog Amnesty International said a living wage is the minimum income a worker needs to meet their necessities.
A fair wage should be earned through a regular workweek—not through excessive hours or overwork.
This is because receiving a living wage is a fundamental human right, the group said. —LDF, GMA News
