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Business July 7, 2026

Legislators Advance Controversial Wage-Setting Reform Proposal

Legislators Advance Controversial Wage-Setting Reform Proposal

Senator Ana Theresia N. Hontiveros-Baraquel has expressed support for a recent wage hike, but emphasized the need for broader reforms to improve workers' living standards.

In a press statement, Ms. Hontiveros welcomed the P85 increase in the daily minimum wage for Metro Manila workers, noting that the hike is a positive step towards improving the lives of those in the region.

However, Ms. Hontiveros also cautioned that a wage-setting system overhaul is necessary to ensure that local businesses, particularly micro, small and medium enterprises, can continue to thrive.

The senator pointed out that the current policy framework should be upgraded to raise the living standard of workers, while also promoting increased productivity in key industries, particularly outside the National Capital Region.

The recent wage hike in Metro Manila, which will be implemented in two tranches, brings the minimum wage to P780 per day.

Ms. Hontiveros also highlighted the importance of Senate Bill No. 210, which aims to reform the wage-setting system by making the Department of Labor and Employment the sole voting representative of national agencies on wage boards.

The measure also designates two governors per region as voting members on wage boards, and instructs other national agencies to work with regional development councils to support small enterprises.

Ms. Hontiveros believes that these reforms are crucial to ensuring that workers' living standards are improved, and that local businesses can continue to contribute to the country's economic growth.

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