Malacañang on Tuesday said the government cannot simply grant wage increase requests, saying the Department of Labor and Employment’s Regional Tripartite Wages and Productivity Board (RTWPB) must first determine whether proposed increases are fair to both workers and employers.

“We recognize the situation of our workers, but we also have to balance it with the capacity of employers. It is difficult to grant a substantial wage increase if employers cannot sustain it,” Palace Press Officer Undersecretary Claire Castro said during a Palace briefing.

Castro was responding to the Trade Union Congress of the Philippines, which criticized the newly approved P85 daily wage increase in the National Capital Region.

The labor group called the increase inadequate, saying it fails to address the decline in workers’ purchasing power and will be implemented in tranches, delaying the full benefit for employees.

Castro warned that imposing a larger increase could force businesses to reduce their workforce.

“If employers cannot afford it, they may lay off employees. That would result in more unemployment. The proposed P200 minimum wage is a matter for Congress. The RTWPB grants only what it determines to be appropriate based on its assessment,” she said.

More than 1.1 million minimum wage earners in Metro Manila are expected to benefit from the new wage order, Castro said.

The increase will be implemented in two phases. A P60 daily increase will take effect on 19 July, while the remaining P25 will be implemented in January 2027.