Government to fund NCR wage hike for small firms

The government will subsidize the P60 daily wage increase for eligible small businesses in Metro Manila for three months, as authorities seek to help employers manage higher labor costs while protecting jobs and business operations.

Presidential Communications Office (PCO) Undersecretary and Palace Press Officer Claire Castro said Monday that the Department of Labor and Employment (DOLE) will issue guidelines for the Sagip Trabaho Program. The subsidy will cover the additional wage cost from October through December.

“Gobyerno ang magbabayad ng dagdag-sahod na P60 para sa mga small and medium businesses,” Castro said.

The program will also require participating firms to implement a Workers Performance Plan and a Business Continuity Plan, which the Palace said are intended to prevent layoffs and business closures during the adjustment period.

About 1.1 million minimum wage earners in the National Capital Region are expected to benefit from the wage increase.

Under Wage Order No. NCR-26, the daily minimum wage will increase to P755. Workers in covered agriculture, small retail and service establishments, and small manufacturing firms will receive P718 per day.

The subsidy represents a targeted government intervention as businesses adjust to higher mandated labor costs. Its three-month duration, however, means employers will eventually have to absorb the full wage increase unless further support is provided.

Separately, Castro said the National Wages and Productivity Commission has approved a P42 daily wage increase for private-sector workers in Central Visayas.

The adjustment is expected to take effect Oct. 14, bringing the minimum daily wage to P582 in Class A areas and P542 in Class B areas.

Castro said the measures are consistent with President Ferdinand Marcos Jr.’s focus on workers’ “kita, trabaho at skills,” combining immediate income support with initiatives aimed at sustaining employment and improving livelihoods.

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