Groups flag wage gap, seek wage hike as inflation hits 7.8%

MANILA, Philippines — Research group IBON Foundation and labor group Sentro ng mga Nagkakaisa at Progresibong Manggagawa (SENTRO) have called for higher wages and stronger government intervention as inflation accelerated to 7.8% in October, saying rising prices of basic goods and services continued to erode workers’ purchasing power.

In separate statements on Thursday, the two groups criticized the government’s response to the rising cost of living, with IBON calling for price regulation and stronger domestic production, while SENTRO demanded a ₱200 across-the-board daily wage increase and a single national minimum wage.

Data from the Philippine Statistics Authority (PSA) showed that headline inflation rose to 7.8% in October from 7.2% in September, driven largely by faster increases in transportation and household expenses.

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Transportation inflation accelerated to 20.1% from 14.6% in September, while inflation in housing, water, electricity, gas and other fuels rose to 9.3% from 8.4%.

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Although food inflation eased to 6.4% from 6.8%, annual price increases for rice and corn remained high at 20.7% and 19.3%, respectively.

Inflation was also higher outside Metro Manila, reaching 8.2%, compared with 5.9% in the National Capital Region.

For the bottom 30% of income households, inflation climbed to 9.5% in October from 9% in September, according to the PSA.

READ: October inflation surges to 7.8%

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IBON said the rising cost of basic commodities was further eroding workers’ purchasing power as minimum wage adjustments continued to lag behind inflation.

Its estimates showed that the national average of regional daily minimum wages increased by only 6.9%, from ₱487 in October 2025 to ₱521 in October 2026.

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This was below the 7.8% headline inflation rate and the 9.5% inflation experienced by the poorest 30% of households.

The group estimated that the ₱521 average daily minimum wage was less than 40% of its computed living wage of ₱1,327 for a family of five, leaving a daily shortfall of ₱806.

IBON also placed the monthly equivalent of the average minimum wage at ₱11,325, below the official monthly poverty threshold of ₱14,634.

The group also cited increases in the prices of basic commodities.

Rice, it said, rose 24% to ₱49.90 per kilogram from ₱40.09 a year earlier, while gasoline prices climbed from ₱58.15 to around ₱90 per liter.

The Department of Energy reported a ₱191 increase in the price of an 11-kilogram liquefied petroleum gas (LPG) tank in October, IBON said.

Electricity rates charged by Manila Electric Co. (Meralco) also increased 13.1% year over year, or ₱1.74 per kilowatt-hour, from ₱13.32 to ₱15.06.

READ: Meralco rates rise in October amid higher generation costs

IBON said the Philippines had the highest inflation rate in Southeast Asia based on the latest available figures, followed by Lao PDR at 7.7%, Cambodia at 5.3%, Vietnam at 5.1%, Indonesia at 3.2%, Thailand at 2.8%, Singapore at 2.2% and Malaysia at 1.8%.

“The Philippines now has the highest inflation rate in Southeast Asia, underscoring how the Marcos administration’s ineffective response — not just the global oil price shock — is driving the crisis,” the group said.

“[T]he Marcos government is not even using its powers under a declared national energy emergency. These include regulating prices under the national emergency provisions of the Oil Deregulation Law and Price Act, and mobilizing sufficient resources to assist over 20 million poor and vulnerable Filipino households,” it added.

Instead, IBON described the government’s response as inadequate, citing minor excise tax cuts, temporary price freezes and limited social assistance.

The group also criticized the country’s reliance on imported food, deregulated oil and privatized electricity, saying these policies left the Philippines exposed to global price shocks while allowing large local and foreign businesses to profit as ordinary households shouldered higher costs.

IBON said the government could “regulate prices, substantially raise wages and incomes, and strengthen domestic production, but chooses not to do so.”

SENTRO, meanwhile, said the latest inflation figures exposed the limitations of the country’s regional wage-setting system, which leaves workers dependent on separate regional wage boards for minimum wage adjustments even as rising prices affect households nationwide.

The labor group called for the immediate passage of a law granting all workers a ₱200 daily wage increase, alongside the abolition of the regional wage-setting mechanism and the establishment of a single national minimum wage.

SENTRO said a nationwide minimum wage would provide workers with a common minimum standard of living regardless of where they work, while collective bargaining and industry-level negotiations could allow them to secure higher pay.

“Workers should not have to endure endless rounds of petitions, consultations and token adjustments before receiving wages that can support a decent life. Nor should their right to a living wage depend on the discretion of regional wage boards. A national minimum wage must establish a common floor of dignity, while collective bargaining and industry-level negotiations should enable workers to secure higher wages,” the group said.

“The government must also address the structural causes of rising prices, particularly the costs of food, energy and transportation. This requires stronger domestic agricultural production, effective regulation of essential services, affordable public transportation and a coherent industrial policy that strengthens domestic productive capacity and generates decent jobs,” it added.

On electricity costs, the labor group urged authorities to investigate allegations of overcharging by Meralco and questionable power cost recoveries.

It also called for a comprehensive review of the Electric Power Industry Reform Act (EPIRA), which it said had failed to ensure affordable and reliable electricity for consumers.

SENTRO said high electricity costs affected not only household budgets but also businesses, domestic industries and employment.

“₱200 across the board. One national minimum wage. End regional wage discrimination,” the group said.

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“Workers need living wages, not barya-barya (pocket change). The country needs a wage policy that protects purchasing power and an economic policy that makes decent living standards possible,” it added. /dm