Balisacan rejects nationwide wage hike

As soaring fuel costs continue to drive up prices of basic goods, Arsenio Balisacan cautioned against calls for a uniform wage increase across the country, insisting that salary adjustments should remain region-specific.

The Department of Economy, Planning and Development (DEPDev) chief emphasized that any decision on wages must go through proper consultation among stakeholders.

“We would want all the parties to discuss and agree, particularly between labor and management, and with [the] government also facilitating that process,” he said.

Balisacan reiterated that the government’s long-standing position is to keep wage-setting at the regional level, in line with Republic Act No. 6727, which mandates regional tripartite wage boards to determine minimum pay rates. These boards—composed of labor, employers, and government representatives—were established to reflect differing economic conditions nationwide after Congress abandoned legislated wage setting in 1989.

Labor groups, however, have recently pressed Ferdinand Marcos Jr. to approve higher wages and suspend fuel taxes, citing the growing burden of inflation on workers. They also urged the government to tap Republic Act No. 12316 to expand tax relief measures, including reducing excise and value-added taxes on petroleum products.

“These measures, alongside higher wages, (a)re needed to ease the impact of inflation and protect workers’ purchasing power,” the groups said.

But Balisacan pushed back, warning that a nationwide wage hike could disrupt regional economies.

“While Metro Manila faces significantly higher living costs, other regions operate under different economic realities. Applying a single minimum wage rate across all regions could create distortions, particularly in areas where businesses operate on thinner margins,” he explained.

He added that imposing a uniform pay increase may discourage investments and slow job creation in less developed areas, underscoring the need for a more calibrated, region-based approach to wage adjustments. TRACY CABRERA