THE Department of Labor and Employment (DOLE) said there is no legal basis to suspend the second tranche of Metro Manila’s daily wage increase after the Foundation for Economic Freedom (FEF) urged the government to defer its implementation.
The group argued that postponing the remaining P25 increase would help temper inflationary pressures and ease the burden on businesses, particularly micro, small and medium enterprises.
Labor Secretary Francis Tolentino, however, said wage orders issued by the Regional Tripartite Wages and Productivity Boards take effect in accordance with the Wage Rationalization Act once the required legal process has been completed.
‘We respect the views of all stakeholders,’ Tolentino said in a text message.
‘However, under the Wage Rationalization Act, wage orders issued by the Regional Tripartite Wages and Productivity Boards take effect in accordance with the law, and there is no legal basis for their suspension or postponement once the prescribed process has been complied with,’ he added.
The labor chief said the country’s tripartite wage-fixing mechanism already provides employers, workers and government representatives the opportunity to weigh economic conditions before wage orders are approved.
‘We remain committed to balancing the welfare of workers, the sustainability of businesses, and the country’s overall economic competitiveness through the established tripartite wage-fixing mechanism,’ Tolentino said.
Metro Manila’s wage order grants an P85 daily increase to minimum wage earners, with the adjustment split into two tranches.
The first P60 increase will take effect on July 25, while the remaining P25 is scheduled for implementation on January 1, 2027.
Republic Act No. 6727, or the Wage Rationalization Act, authorizes regional wage boards to determine minimum wage adjustments after consultations with labor, employers and government representatives.
The FEF earlier warned that proceeding with the second tranche could do ‘more harm than good,’ saying higher labor costs could outweigh the expected benefits if inflation continues to ease.