ECOP opposes legislated wage hike

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March 18, 2026 | 12:00am

MANILA, Philippines — The country’s umbrella group of employers has voiced its opposition to a legislated wage hike, emphasizing that such decisions are best handled by regional wage boards.

Employers Confederation of the Philippines (ECOP) president Sergio Ortiz-Luis Jr. said in an interview with “Money Talks” on One News yesterday that the group is against a legislated wage hike and prefers determining wage adjustments through the regional wage boards.

“Even if the wage board is not perfect, we support it because everybody is represented,” he said.

Regional wage boards are composed of representatives from the government, private sector and workers to balance every sector’s needs.

Ortiz-Luis’ comments were made amid calls from some labor groups for a legislated national wage increase as fuel prices continue to climb due to the ongoing conflict in the Middle East.

He said another reason why wages are best left with regional wage boards is to encourage investments in rural areas.

“If the salaries are the same, everybody will invest only in urban areas,” he said.

With the main problem being the rising fuel costs, he said the government should take the lead through the removal of the excise tax on fuel and some of the value-added tax.

“We are not exactly fond of dole outs and targeted giving,” he said.

He said the private sector is helping ease the burden of the rising fuel costs on employees, with some businesses arranging transport services.

He said some of the small, medium and large enterprises are also able to provide transportation allowance to employees.

“But don’t expect anything from micro (enterprises) because they’re just trying to survive this,” he said.

He said micro enterprises need more government support now.