Workers on Thursday challenged the Marcos administration to prove the country’s new upper-middle-income status benefits ordinary Filipinos by raising workers’ wages instead of opposing legislated pay hikes.

The Trade Union Congress of the Philippines (TUCP) said millions of minimum wage earners have little reason to celebrate the World Bank’s upgrade while they continue to struggle with low wages, rising living costs, heavy taxes, and inadequate public services.

“It does not make any sense for our economic managers to boast of this higher national status while continuing to shortchange workers by claiming, time and again, that a badly needed legislated wage hike, the first in 37 years since 1989, only spells doom for our economy and businesses,” the TUCP said.

The group said there can be no genuine economic growth if only the wealthiest benefit while the poor and middle class continue to fall behind.

It noted that Metro Manila’s minimum wage will be increased by P85 in two phases, bringing the daily minimum wage to P780 by January 2027. Even then, the amount remains far below the P1,312 daily living wage estimated by IBON Foundation for a family of five.

The TUCP noted the country’s improved economic standing was built partly on the sacrifices of overseas Filipino workers, many of whom continue to work jobs abroad out of necessity rather than choice because quality employment remains limited at home.

Mere soundbite

“For workers and ordinary Filipinos, the Philippines can only be an upper-middle-income country if it starts to act as one, or else it is a mere feel-good soundbite detached from the daily hardships of Filipino families,” the group said.

The challenge came after the World Bank elevated the Philippines to upper-middle-income status after the country’s gross national income per capita reached $4,850 in 2025, exceeding the $4,636 threshold.

The World Bank said the reclassification reflected broad-based economic growth, with the Philippine economy expanding by an average of 5.8 percent over the past five years. The Philippines joined Jordan, Micronesia, Sri Lanka and Vietnam in the upper-middle-income category.

President Ferdinand Marcos Jr. welcomed the upgrade, saying it recognized the resilience of the Filipino people and the effectiveness of the government’s economic policies.

“For years, Filipinos have worked hard to build this country. Today, the world has taken notice,” Marcos said in a video message.

He said the milestone would strengthen investor confidence, attract more investments, generate better-quality jobs, and create more opportunities for Filipino families.

Time running out

Economy, Planning and Development Secretary Arsenio Balisacan credited sustained economic reforms and overseas Filipino workers’ remittances for helping lift the national income but acknowledged that income inequality persists.

“Our priority is to ensure that growth becomes more inclusive, and that its benefits reach all Filipinos,” Balisacan said.

Finance Secretary Frederick Go said the reclassification affirmed the government’s economic reforms and strong economic fundamentals, while Bangko Sentral ng Pilipinas Governor Eli Remolona Jr. said it underscored the importance of maintaining low inflation, adequate international reserves, a sound banking system, and modern payment systems to sustain growth.

The TUCP said the administration has only two years left to ensure the country’s improved global standing translates into tangible gains for workers, arguing that the World Bank’s recognition will mean little unless Filipino families have higher incomes and a better quality of life.