The House of Representatives of the Philippines passed a significant legislative measure on June 4, aimed at increasing the daily minimum wage for private workers by PHP 200.

This legislation marks the first increase in the minimum wage in nearly four decades.

The bill, identified as House Bill 11376, was approved with a vote tally of 172 in favor, with no opposition or abstentions.

The passage of this bill lays the groundwork for bicameral discussions with the Senate, which previously approved its version, Senate Bill 2534, in 2024, proposing a more gradual increase of PHP 100.

Representative Raymond Democrito Mendoza from the Trade Union Congress of the Philippines (TUCP), one of the key proponents of the bill, asserted that this wage adjustment could significantly enhance the lives of over five million minimum wage earners and their families, bringing them closer to a living wage.

Mendoza called on President Ferdinand “Bongbong” Marcos Jr. to endorse the bill, describing this opportunity as a historic moment for his administration and urging him to alleviate the burdens faced by workers enduring stagnant wages.

However, President Marcos has expressed caution regarding the proposed wage hike, highlighting the necessity for a substantive review of the bill to avert potential adverse consequences for businesses, which might include inflationary pressures.

In the Philippines, minimum wage levels are determined by regional wage boards, reflecting varying costs of living across different areas.

Adjustments to these wages occur periodically, typically resulting in incremental increases based on local economic conditions, as well as the nature of employment in sectors like agriculture.

The existing wage structure has faced criticism from labor groups, who argue that it creates disparities in compensation for similar work across different regions.

For instance, as of recent assessments, the minimum wage in Metro Manila stands at PHP 645 per day, sharply contrasting with the PHP 361 daily wage in the Bangsamoro Autonomous Region in Muslim Mindanao, highlighting regional inequalities.

Representative Arlene Brosas from the Gabriela Women’s Party criticized the current wage levels as insufficient for providing families with basic necessities for food, shelter, and savings.

Concurrently, Representative Eduardo Villanueva of the CIBAC Party-List emphasized the ethical obligation to ensure workers are fairly compensated, characterizing the wage increase as a moral imperative.

Despite the opposition to the current wage board system, advocates contend that larger companies can accommodate wage increases without compromising profitability, based on analyses conducted by various organizations.

Should this bill be enacted into law, the government has indicated plans to provide assistance to smaller businesses potentially affected by the wage adjustments to mitigate financial pressures.

The critical aspect now revolves around whether Congress can submit the finalized bill to President Marcos before the current session adjourns and how he will respond once the bill reaches his desk.