Western Visayas salary hike: workers push, MSMEs ask for relief

ILOILO CITY — Greater government support for micro, small, and medium enterprises (MSMEs), a wage increase comparable to those in other regions, and the deferment of a proposed adjustment were among the key issues raised during a public hearing on minimum wage rates for private-sector workers in Western Visayas.

The Regional Tripartite Wages and Productivity Board-Western Visayas (RTWPB-6) conducted its third public hearing on the proposed wage adjustment on Oct. 9 with stakeholders from Iloilo City and the provinces of Iloilo, Antique, and Guimaras.

Jessraf Palmares, president of the Iloilo Federation for Information Technology, Inc. (IFIT), supported a wage increase but stressed the need to help businesses, particularly MSMEs, cope with higher operating costs.

IFIT is a private-sector-led organization in Iloilo City that drives the growth of the information technology and business process management (IT-BPM) and digital innovation sectors in Iloilo.

Palmares, who also operates a small business, said soaring electricity and rental costs had forced the business to reduce its workforce and assign more responsibilities to remaining employees.

“What is the plan of the government to subsidize the MSMEs? I hope there will be a tax bracket under which value-added tax can be removed. MSME taxes should be reduced so we can still earn a profit,” Palmares said.

Elmer Forro, one of the lead conveners of the United Labor-Western Visayas Workers’ Alliance (ULWVA), said workers and small businesses had yet to feel the benefits of the region’s economic growth.

Western Visayas’ gross regional domestic product grew 6.4% in 2025, the fastest among the Philippines’ 18 regions and above the national growth rate of 4.4%.

“But workers and MSMEs cannot feel this growth. Its benefits have not reached workers and MSMEs but have also gone to big businesses investing here,” Forro said.

He acknowledged the difficulty of balancing workers’ demands for higher wages with the capacity of MSMEs to absorb additional labor costs.

“The big question in the debate between workers and MSMEs is the issue of wages. Higher wages are a burden for MSMEs, but workers also cannot survive if the minimum wage does not increase,” he said.

Forro questioned the government’s role in addressing the situation, saying one-time financial assistance was insufficient to resolve the underlying problems.

“We do not just need one-time, substantial financial assistance. The government needs to help MSMEs increase their capacity to provide fair wages to their workers,” he said.

He added that the government should provide greater assistance to MSMEs to help balance the interests of employers and workers.

“To our MSMEs and labor groups, it is high time for us to unite. We have a common problem. We are both victims. We should seek from the government what we deserve,” Forro said.

Comparative wage increase

Palmares also urged the wage board to consider wage rates in neighboring regions rather than “compete” with other regional wage boards that approved much higher increases.

“If possible, Iloilo should have the same minimum wage as Cebu,” he said.

Palmares said two BPO companies had planned to establish operations in Iloilo but later moved their plans to Cebu because of Iloilo’s higher minimum wage.

A teacher from St. Anthony’s College in Antique also supported a wage increase but said a PHP 200 daily adjustment would be too much for educational institutions to absorb.

She suggested that Western Visayas consider an increase comparable to those granted in other regions.

“PHP 60 is more or less acceptable. It is not substantial but it could help,” she said.

The teacher warned that a PHP 200 increase could adversely affect private schools, particularly as they consider possible tuition adjustments.

In Central Visayas, private-sector workers are scheduled to receive a PHP 42 daily minimum wage increase starting Oct. 14, 2026. The minimum wage in expanded Metro Cebu and other Class A areas will rise from PHP 540 to PHP 582, while rates in other covered cities and municipalities under Class B will increase from PHP 500 to PHP 542.

In the National Capital Region, a PHP 60 daily wage increase took effect on Sept. 26, raising the minimum wage to PHP 755 for non-agricultural workers and PHP 718 for agricultural workers and employees of certain small establishments.

In Western Visayas, the current daily minimum wage rates under the latest wage order are as follows:

• PHP 550 for workers in non-agricultural, industrial, and commercial establishments employing more than 10 workers;
• PHP 525 for workers in establishments employing 10 or fewer workers; and
• PHP 520 for agricultural workers.

The rates were established under a wage order issued by RTWPB-6 that took effect on Nov. 19, 2025. 

Deferment sought

Happy Mapua Abenir, president of the Iloilo Hotels, Restaurants, and Resorts Association, Inc., called for the deferment of the proposed wage increase until next year, citing economic uncertainties and mounting operating costs.

“The business sector is now experiencing an extraordinary event in 2026. It is very worrisome because we cannot seem to predict what will happen until the end of the year,” she said.

She described the current business environment as worse than the COVID-19 pandemic, saying businesses were struggling not only with rising prices but also with numerous expenses that had become increasingly difficult to sustain.

While acknowledging local governments’ efforts to help alleviate poverty, Abenir said providing loans was only a “band-aid” solution and would not address the underlying problems faced by businesses.

Instead, she called for relief from high taxes, rental costs, electricity bills, and fuel expenses.

A resort owner in Guimaras likewise sought a deferment, explaining that the tourism business was seasonal and that establishments still had to retain employees during off-peak periods despite having little or no income.

“I hope the increase can be deferred for now because this is the off-season for resorts. We are just waiting for people to take their vacations at our resort,” she said.

Tiffany Ong of the Federation of Free Workers, who represented health workers during the hearing, called for government intervention through subsidies and temporary relief from mandatory deductions.

She proposed a moratorium on deductions for government-mandated contributions, including those for the Philippine Health Insurance Corp., Social Security System, and Pag-IBIG Fund.

“I hope these deductions can be temporarily suspended. We can hardly feel our salaries because of the mandatory deductions,” Ong said.

Decision before year-end

Atty. Sixto T. Rodriguez Jr., RTWPB-6 chairperson and concurrently director of the Department of Labor and Employment 6, said the board may decide before the end of the year whether to issue a new wage order.

“We will have to act within a reasonable time because you know the last wage order was November 19. It might be after that; it should not be before that. Yes (before the year ends),” he said in an interview.

Republic Act 6727, or the Wage Rationalization Act, generally limits the issuance of a new wage order within 12 months of the previous order’s effectivity, absent supervening conditions.

Rodriguez stressed that wage determination involved balancing workers’ right to fair compensation with employers’ interests in sustaining their businesses, taking into account prevailing economic conditions.

The RTWPB-6 has received four petitions seeking a wage increase.

On April 30, ULWVA filed a petition seeking a PHP 250 daily wage increase, which would raise the regional minimum wage from PHP 550 to PHP 800, along with a cost-of-living allowance. The group cited global oil supply disruptions and their impact on the regional economy.

On June 5, the Iloilo Doctors Hospital Employees Union, which is also a member of ULWVA, filed a similar petition.

After evaluation, the board found that the petition substantially complied with legal requirements and issued a resolution recognizing its sufficiency.

On June 26, the BPO Industry Employees Network filed a wage petition seeking the same adjustment, citing concerns specific to business process outsourcing workers.

The fourth petition was filed on July 24 by the Iloilo Pepsi-Cola Workers Independent Union, which also sought a PHP 250 daily wage increase.

“Our decision is always based on facts and based on evidence presented, as well as what constitutes a just and reasonable amount,” Rodriguez said.