Tolentino: Disruptions over P85 wage hike in NCR are ‘minimal’
Philippine Labor Secretary Francis Tolentino stated that the upcoming P85 daily wage hike in Metro Manila will have minimal economic disruption. He noted that while the hike benefits over 1.1 million workers, the government is prepared to assist small businesses facing wage distortion issues.
Why it matters
Reflects the tension between improving worker welfare and maintaining economic stability for small businesses in developing economies.
MANILA, Philippines - Labor Secretary Francis Tolentino maintained that disruptions from the implementation of the P85 daily wage hike in the National Capital Region (NCR) are "minimal" amid concerns over a possible "wage-price spiral."
The P60 first tranche is set to take effect on July 25, while the P25 second tranche will be implemented in January 2027 under Wage Order No. 27, according to the Department of Labor and Employment (Dole).
READ: Dole: No delay, no postponement of P85 wage hike for NCR
READ: Dole: 'Historic' P85 wage hike set for Metro Manila workers
The Foundation for Economic Freedom on Monday called for the suspension of the wage order, describing its issuance as "abrupt" and saying it could "trigger severe unintended consequences."
Tolentino said the overall impact of the wage hike is much greater, with over 1.1 million workers in the NCR expected to benefit.
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