Lawmaker sees June regional wage hikes

House Minority Leader and 4Ps Party-list Rep. Marcelino “Nonoy” Libanan said Sunday he expects the country’s 17 regional wage boards to begin another round of minimum wage increases in June as fuel-driven inflation adds pressure on workers’ incomes.

“There’s no question that a new round of regional wage hikes is now fully justified, mainly due to the inflationary impact of elevated fuel prices linked to the ongoing conflict in the Middle East,” Libanan said in a statement ahead of Labor Day on Friday.

Libanan said the wage adjustments are needed to help restore the purchasing power of the country’s 5.2 million minimum wage earners.

“We have to restore the lost buying power of the country’s 5.2 million minimum wage earners if we want to revive and sustain consumption spending—and, by extension, the broader economy,” Libanan said.

“Persistent price increases have steadily eroded real wages. Many workers are effectively earning less in real terms today than they did before, despite previous nominal pay adjustments. This wage erosion must be reversed through timely and meaningful wage increases,” Libanan added.

The National Capital Region wage board is expected to lead the next cycle of pay adjustments, Libanan said.

“We are counting on the NCR wage board to kick off the series of regional wage adjustments this June,” Libanan said.

The NCR wage board last issued a wage order on June 24, 2025, raising the daily minimum wage by PHP 50, from PHP 645 to PHP 695, effective July 18, 2025.

The 16 other regional wage boards followed with their own wage adjustments over the next 10 months after the Metro Manila increase.

Under existing rules, wage orders generally may not be disturbed for 12 months from effectivity unless supervening conditions justify an earlier adjustment, according to the National Wages and Productivity Commission.

The NWPC said the country has 17 Regional Tripartite Wages and Productivity Boards that determine minimum wages at the regional, provincial or industry level and promote productivity programs.

Libanan said new minimum wage increases could also affect workers earning above the minimum wage as companies adjust pay structures.

“Regional minimum wage increases are also likely to benefit higher-paid workers, as employers move to correct wage distortions,” he pointed out.

Wage distortion occurs when mandated increases in minimum pay narrow or eliminate the wage gap between entry-level and more senior positions, effectively erasing distinctions based on skill, length of service or other bases, according to labor rules.

Recent inflation data support the push for wage intervention.

The Philippine Statistics Authority said headline inflation accelerated to 4.1 percent in March 2026 from 2.4 percent in February 2026, bringing first-quarter average inflation to 2.8 percent.

The PSA said the March inflation uptrend was driven mainly by transport, which rose 9.9 percent from a 0.3 percent decline in February, and by food and non-alcoholic beverages, which increased 3.0 percent from 1.8 percent a month earlier.

In the NCR, inflation rose to 3.6 percent in March 2026 from 1.9 percent in February 2026, with transport increasing 11.0 percent after a 0.5 percent decline the previous month, the PSA said.

Outside the NCR, inflation accelerated to 4.2 percent in March 2026 from 2.5 percent in February 2026, while Central Visayas posted the highest regional inflation rate at 7.4 percent and the Negros Island Region recorded the lowest at 1.5 percent, according to the PSA.

The Bangko Sentral ng Pilipinas has also warned of a weaker inflation outlook.

“The inflation outlook has deteriorated amid the ongoing conflict in the Middle East. Higher global oil and fertilizer prices have begun feeding through to domestic fuel and food prices,” the BSP said in a statement on April 23.