DOLE to assist MSMEs affected by P85 wage hike

July 23, 2026 | 12:00am

MANILA, Philippines —  The Department of Labor and Employment (DOLE) will tap its Adjustment Measures Program (AMP) to provide immediate assistance to micro, small and medium enterprises (MSMEs) affected by the P85 minimum wage increase in Metro Manila, Labor Secretary Francis Tolentino said.

Under the AMP, Tolentino said DOLE may provide funding for equipment and other productivity-enhancing measures to help small businesses cope with higher labor costs while allowing them to use their available capital for wage adjustments.

“For example, the cash register machine of a restaurant – the POS (point of sale), if needed – can be funded by the DOLE so that their extra capitalization can be used for wage adjustments,” he explained.

The AMP is intended to help MSMEs, particularly those with limited capital, avoid bearing the full impact of the wage hike immediately.

Through the program, DOLE provides financial assistance to help MSMEs build resilience against economic disruptions through interventions such as capacity-building, business enhancement, product development, labor compliance and industrial peace-building measures.

Aside from financial assistance, Tolentino said qualified establishments may also apply for exemption certificates within the prescribed 75-day period.

“There are pathways to be exempted. They have 75 days under the law to file an exemption certificate with DOLE, especially those in need,” he said.

He stressed that wage increases are determined through a process mandated by law, with adjustments based on prevailing socio-economic conditions, workers’ needs and employers’ capacity to pay.

“Wage Order No. 27 was issued pursuant to Republic Act 6727, which mandates the Regional Tripartite Wages and Productivity Boards (RTWPBs) to adjust workers’ wages upon reaching the anniversary date – taking into account the needs of the local economy and the workers, while balancing these with the needs of capitalists, employers and management,” he said.

Business groups, however, said Tolentino had ignored their opposition during the tripartite talks to the large increase.

The Bangko Sentral ng Pilipinas and the Foundation for Economic Freedom have warned of the inflationary impact of the wage hike, which would negate the benefits of the pay adjustment.

Employers have also warned of layoffs and business shutdowns especially among MSMEs.

Critics have accused Tolentino of imposing a burden on the private sector for personal political purposes.