The Department of Labor and Employment (DOLE) is launching an assistance program to help micro, small, and medium enterprises (MSMEs) in Metro Manila manage an upcoming P85 wage increase. According to DOLE Secretary Francis Tolentino, the initiative aims to provide financial support to small businesses with limited capital that may struggle to implement the new wage mandate. The P85 increase will take effect in two stages, with a P60 hike starting July 25, 2026, and the remaining P25 scheduled for January 2027.
Adjustment Measures Program and Financial Support
The assistance is provided through the DOLE Adjustment Measures Program (AMP), which offers funding for equipment and productivity-enhancing tools. Secretary Tolentino stated that the program allows the government to subsidize the cost of expensive equipment for offices or restaurants, provided the business redirects its saved capital toward worker wage adjustments. This mechanism is designed to help establishments comply with the new wage order without disrupting their daily operations.
Did You Know? The P85 wage hike is structured in two tranches, with the first P60 increase taking effect on July 25, 2026, and the final P25 increment arriving in January 2027.
Exemption Procedures and Future Compliance
Beyond the AMP, businesses facing significant financial constraints may file for exemption certificates at DOLE. Secretary Tolentino noted that these applications must be submitted within a 75-day period and will remain subject to specific requirements and qualifications. The Secretary emphasized that these interventions are part of a broader effort to build economic resilience through capacity-building, business enhancement, and labor compliance.
Tripartite Representation for MSMEs
Secretary Tolentino has previously highlighted the importance of including MSMEs in wage-setting discussions. During a session at the Kapihan sa Manila Hotel, he encouraged small business owners to strengthen their representation in the tripartite process. As these enterprises are among the most impacted by wage adjustments, their active participation is viewed as a necessary step for ensuring that future policies balance worker benefits with employer operational needs.
Frequently Asked Questions
What is the schedule for the P85 wage increase?
The increase is split into two tranches: P60 begins on July 25, 2026, and P25 follows in January 2027.
How does the Adjustment Measures Program (AMP) work?
The AMP provides funding for business equipment under the condition that the business owner uses their existing capital to cover the costs of the new worker wages.
Can businesses apply for an exemption from the wage increase?
Yes, businesses may file for exemption certificates with DOLE within a 75-day window, provided they meet the necessary requirements and qualifications.
How do you think these government interventions will affect the long-term growth of small businesses in Metro Manila?
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