A labor group in Cebu has criticized the newly approved P42 daily minimum wage increase in Central Visayas, arguing that the adjustment remains insufficient amid rising prices of basic goods and utilities.
The new wage order, approved by the Regional Tripartite Wages and Productivity Board VII and affirmed by the National Wages and Productivity Commission, will raise the daily minimum wage to P582 in Class A areas, including expanded Metro Cebu, and P542 in Class B areas. The new rates are expected to take effect on October 14, 2026.
Ama Sugbo-Kilusang Mayo Uno chairman Jaime Paglinawan described the increase as inadequate and called for a P1,200 national minimum wage. The group said workers continue to face pressure from higher electricity, transportation and commodity costs.
Paglinawan also pointed to what the group described as declining purchasing power, arguing that the additional P42 would not sufficiently offset the rising cost of living in Central Visayas.
The wage adjustment covers private-sector workers in Cebu, Bohol, Negros Oriental and Siquijor. Officials said the wage-setting process included consultations and public hearings involving labor, management and other stakeholders.
The wage hike has also drawn concern from business groups. The Cebu Chamber of Commerce and Industry said companies, particularly micro, small and medium enterprises, will face additional costs not only from basic wages but also from higher 13th-month pay, overtime, holiday pay and mandatory employer contributions.
The Mandaue Chamber of Commerce and Industry likewise warned that higher labor costs could add pressure to businesses already dealing with elevated electricity, fuel, transportation, imported inputs and financing expenses. It said some enterprises could respond by slowing hiring, reducing operating hours or delaying expansion.
Labor groups, meanwhile, maintain that stronger wage increases are necessary to protect workers’ purchasing power as living costs continue to rise. Other business representatives have called for government assistance and productivity programs to help companies absorb higher labor expenses without reducing employment.
The new Central Visayas wage rates are expected to benefit hundreds of thousands of minimum wage earners, while the debate over the appropriate level of pay continues between labor groups seeking higher incomes and businesses concerned about operating costs and employment.
