* Central Visayas minimum wage earners will receive a P42 daily pay increase starting Oct. 14, 2026, raising Metro Cebu daily rates to P582 and domestic monthly pay to P7,500.
* Business groups like the Mandaue Chamber of Commerce and Industry warned the mandatory adjustment will strain micro, small, and medium enterprises already facing high utility and operational costs.
* Labor officials confirmed compliance is mandatory, though struggling enterprises can apply for a 75-day exemption or access government salary subsidies under the Sagip Trabaho program.
MINIMUM wage earners in Central Visayas will see an additional P42 to their daily pay starting mid-October 2026, pushing the highest minimum wage in the region to P582.
The National Wages and Productivity Commission unanimously approved the increase set by the Regional Tripartite Wages and Productivity Board. The new rates will take effect on Oct. 14, which is 15 days after the wage order’s scheduled publication on Monday, Sept. 28.
Under the new structure, workers in Class A areas — which cover the expanded Metro Cebu area — will have their daily minimum wage jump from P540 to P582. Those in Class B areas, encompassing the rest of the region’s cities and municipalities, will see their minimum pay rise from P500 to P542. Domestic workers will also receive a P500 monthly bump, bringing their minimum wage from P7,000 to P7,500.
The adjustment follows months of consultations after petitions for a wage hike were filed in April. Acting Labor Secretary Francis Tolentino noted that the increase aligns with the region’s economic realities.
“That is in consonance likewise reflective of the current inflation rate in Cebu,” Tolentino said.
While the P42 adjustment is lower than the P60 increase recently granted in Metro Manila, Tolentino explained that economic conditions vary by location, which is the primary reason for having separate regional wage boards. For a full-time worker in Central Visayas, the daily hike translates to an additional P1,092 per month.
Pressure on local enterprises
The wage hike will benefit more than 300,000 workers across the region, including those in Negros Oriental and Siquijor. However, local business groups warned the adjustment could strain an already burdened sector.
The Mandaue Chamber of Commerce and Industry (MCCI) had earlier petitioned to deny the increase, arguing that the region had just implemented the previous wage order in October 2025. The chamber highlighted that enterprises are already grappling with rising costs for utilities, fuel, transportation and imported materials, making another mandatory pay hike difficult to absorb.
“A statutory wage increase provides an immediate nominal benefit, but if it results in higher prices, reduced hiring, shorter working hours, informal employment, or business closures, the long-term effect on workers may be negative,” the MCCI said in its position paper.
The business group emphasized that micro, small, and medium enterprises make up 99.4 percent of registered firms in the region and provide around 443,000 formal jobs. Instead of a blanket wage increase, the chamber proposed targeted government assistance, such as food and transport subsidies, to help vulnerable households without risking business closures.
Balancing compliance and survival
Despite the pushback, labor officials maintain that the increase is a necessary compromise. Department of Labor and Employment 7 Director Emmanuel Ferrer said the board factored in socioeconomic indicators, the basic needs of families and the employers’ capacity to pay before deciding on the final amount.
“Right from the start, the board decided that there will be an increase. But the increase should be responsible enough from both sides,” Ferrer said.
Ferrer reminded employers that compliance with the new wage order is mandatory. Workers who do not receive the adjusted rate can file complaints with the labor department, which may subject non-compliant businesses to official inspections.
To cushion the financial blow on smaller businesses, the government is offering temporary relief. Enterprises that cannot afford the new rates have a 75-day window starting Oct. 14 to apply for an exemption.
Additionally, the labor department will deploy its Sagip Trabaho program to assist struggling businesses. Under this initiative, the government will subsidize the salaries of affected workers for 90 days. Tolentino noted that this measure is designed to ensure workers receive their mandated pay while helping vulnerable employers survive the transition.
/ DPC