The Regional Tripartite Wages and Productivity Board 7 approved a P42 daily wage increase on Monday, Sept. 28, 2026, raising minimum rates to P582 in Class A and P542 in Class B areas starting Oct. 14.
Ama Sugbo-KMU chairman Jaime Paglinawan slammed the adjustment as meager and unlivable, calling instead for a P1,200 national minimum wage to combat high utility and commodity prices.
Business groups, including the Cebu Chamber of Commerce and Industry and the Mandaue Chamber of Commerce and Industry, warned that the hike adds severe cost burdens to MSMEs, risking higher consumer prices and reduced employment.
A MILITANT and progressive labor alliance in Cebu said the newly approved P42 daily wage increase in Central Visayas falls short of what workers need to cope with the rising cost of living.
In a statement Monday, Sept. 28, 2026, Alyansa sa mga Mamumuo sa Sugbo-Kilusang Mayo Uno (Ama Sugbo-KMU) chairman Jaime Paglinawan said the increase, which will raise the minimum wage to P582 in Class A areas and P542 in Class B areas starting Oct. 14, was “meager and unlivable.”
The Regional Tripartite Wages and Productivity Board 7 approved the P42 increase following consultations and public hearings with labor, management and other stakeholders across the region.
Wage order affirmed
The wage order was unanimously affirmed by the National Wages and Productivity Commission during its meeting in Cebu City on Saturday, Sept. 26, with Dole Acting Secretary Francis Tolentino present for the deliberations.
The new rates will take effect on Oct. 14, raising the daily minimum wage from P540 to P582 in Class A areas, including Expanded Metro Cebu, and from P500 to P542 in Class B areas. This adjustment is expected to benefit over 300,000 minimum wage earners in Cebu, Bohol, Negros Oriental and Siquijor, making Central Visayas the second region in the country to implement a wage hike.
Paglinawan said the new wage rates would remain insufficient to keep up with the rising prices of basic commodities and utility bills, adding that the P42 increase remained far behind the minimum wage in the National Capital Region.
“The latest wage order from Regional Tripartite Wages and Productivity Board - Region 7 office fails to deliver social justice to workers, even though the Philippine Constitution clearly mandates that the State must ensure workers — organized and unorganized — receive a living wage. Specifically, a national minimum wage of P1,200,” Paglinawan said.
He pointed to the declining purchasing power of workers, saying that P133.90 is now needed to buy what P100 could purchase in 2018. Paglinawan said workers had valid grounds to demand a living wage, particularly amid the high cost of basic goods and services in Central Visayas, citing electricity rates of P14.96 per kilowatt-hour and water charges of P259.16 per month for the first 10 cubic meters.
Public reactions
The wage hike in Central Visayas drew mixed reactions from the public, with some welcoming the increase while others said the additional P42 a day would not be enough to cope with rising living costs.
“The question is, can an ordinary Filipino afford the increase given the current inflation?” a concerned citizen said.
Several commenters questioned whether the wage adjustment would make a significant difference amid higher transportation fares, prices of basic goods and mandatory employee contributions.
“The P42 increase is not worth it because the prices of goods and mandatory deductions will also increase. Therefore, the government will still be the one to benefit because its collections from mandatory employee deductions will increase,” a commenter said in Cebuano.
Some expressed concern that the increase could add to the costs of small businesses and potentially affect employment, while others welcomed the wage hike, saying that any increase is better than having no adjustment at all. Commenters also thanked workers and groups who campaigned for higher wages, hoping for another salary increase in the coming months.
Ama Sugbo-KMU is calling for a P1,200 national minimum wage, which Paglinawan said would provide workers with a salary sufficient to meet their basic needs. The group cited Central Visayas’ economic growth in recent years, noting that workers generated P1.19 trillion in wealth in 2023, P1.28 trillion in 2024 and P1.32 trillion in 2025.
Paglinawan argued that the wage increase did not reflect the region’s economic gains and called for Congress and the Senate to pass legislation providing for a living wage. He said such legislation should ensure greater dignity for workers, whom he described as key contributors to the country’s economy and to the production of goods and profits.
Business impact
The Cebu Chamber of Commerce and Industry (CCCI) is calling for stronger support from the National Government and local units to help businesses, particularly micro, small and medium enterprises (MSMEs), as the new minimum wage takes effect.
CCCI said it recognizes the need to protect workers’ purchasing power amid the rising costs of food, electricity, transportation, housing, healthcare and other basic necessities. However, the chamber said businesses must assess the broader cost implications of the wage increase, which extend beyond basic payroll expenses.
These include higher costs for 13th-month pay, overtime and holiday pay, night differential, service incentive leave and mandatory social protection contributions, as well as possible wage compression among employees already earning above the minimum.
“Wage adjustments must be implemented with due regard to the capacity of enterprises, particularly MSMEs, to absorb additional labor costs without compromising employment, competitiveness, or long-term viability,” CCCI said.
The chamber urged the government to provide measures to help businesses adjust, including access to affordable financing, productivity and digitalization programs, technology adoption assistance, skills development, wider market access, appropriate tax relief and regulatory support.
CCCI also stressed the need to link wage growth with productivity growth through investments in skills, technology, innovation and more efficient business processes. Beyond the wage adjustment, the chamber called for measures to address the factors driving up the cost of living, saying lower prices for essential goods and services would help ensure that the increase translates into stronger real purchasing power for workers.
It said continued dialogue among the government, labor and business sectors would be needed to monitor the wage increase’s impact on employment, productivity, MSME viability, investment, competitiveness and the overall cost of doing business.
Chamber opposition
Filipino-Cebuano Business Club Inc. chairman Rey Calooy said the group supports efforts to improve workers’ wages but noted that MSMEs are already dealing with higher fuel, electricity, raw material, logistics and financing costs.
“A wage hike adds another burden to businesses with thin margins,” Calooy said.
He said the challenge is to ensure that higher wages do not lead to higher prices, reduced hiring or business closures, adding that the government should support MSMEs through productivity programs, affordable financing, lower operating costs and other measures.
“We need higher wages, but we also need stronger and more sustainable MSMEs to provide jobs,” Calooy said.
He said the cost of doing business has increased, with businesses yet to see a clear solution to the pressures they face, though they have remained resilient and continued to operate through difficult conditions for both employers and employees.
Meanwhile, the Mandaue Chamber of Commerce and Industry (MCCI) said the wage hike would pose another challenge for many MSMEs. In a separate position paper, MCCI reiterated its opposition to another minimum wage increase, citing mounting business costs and concerns over employment and competitiveness.
The chamber had asked the wage board to deny pending petitions for an additional general minimum wage increase or a unified regional wage baseline and to maintain the P540 and P500 rates. MCCI said a mandatory increase less than a year after the implementation of the previous wage order would add to pressures from higher electricity, fuel, transportation, imported inputs and financing costs.
It said 99.4 percent of enterprises in Central Visayas are MSMEs, which provide about 443,000 formal jobs. Labor accounts for an estimated 30 percent to 50 percent of operating expenses for many of these businesses, it added.
MCCI warned that businesses unable to absorb higher payroll costs could respond by reducing operating hours, freezing hiring, delaying expansion, shifting to seasonal or task-based employment, or reducing their workforce. The chamber also pointed to the broader cost implications of a wage increase, including higher employer contributions to the Social Security System, Philhealth and Home Development Mutual Fund, or Pag-ibig Fund.
It also warned of possible wage compression as entry-level pay moves closer to the salaries of experienced workers and supervisors. Rather than relying primarily on higher statutory wages, MCCI proposed targeted government assistance for households affected by rising food and other basic costs.
Its proposals include expanded food-stamp or food-voucher programs, public transport subsidies, measures to moderate utility costs, skills and employment programs, agricultural support and assistance for low-income households supporting five or more members.
“Protecting workers should also involve protecting the jobs that provide their income,” MCCI said. / DPC / KOC