Private workers in Cagayan Valley are seeking a P100 increase in their daily pay, with labor groups pointing to rising household expenses and other financial obligations as reasons for the proposed adjustment.
The demand was raised during a consultation and public hearing on the wage hike held Thursday at the Faustino N. Dy Hall at the Isabela provincial capitol. The discussions brought together labor representatives, employers, kasambahay or domestic helpers, and household employers.
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Workers Cite Rising Cost of Basic Needs
The proposed increase would bring the current P500 daily minimum wage for agriculture and non-agriculture workers higher, if approved. The P500 rate was mandated by the Regional Tripartite Wages and Productivity Board (RTWPB) for private establishments in November 2025, following a P40 increase.
Employee Johnny Alvaro said workers are hopeful that the wage board will approve their request as the cost of necessities continues to rise. “We are positive to get a minimum wage hike with the increasing prices of basic commodities, oil prices, and transportation expenses,” Alvaro said in an interview with reporters after the consultation.
Jocelyn Labasan, an accountant at Surdiacan Health Care in Isabela, also backed the proposed increase, saying additional income would help cover food costs and other obligations. “This is not an additional perk for us (P100 daily wage hike). It is needed so our families would have decent living,” she told the audience.
Employers, however, asked that the P500 daily rate remain unchanged. Their representatives cited higher employment and production expenses, fewer customers in trading, declining student numbers in the academe, and the possibility of workforce streamlining as businesses attempt to reduce costs.
Vivian Briones, employer-principal of Magsaysay High School in Santo Tomas, Isabela, said a higher wage could add pressure to operations already affected by lower enrollment. “The effect of wage increase, coupled with a decrease in the number of enrollees or students, will force us to lessen regular employees,” Briones said. She added that premiums and employers’ share for Social Security System, PhilHealth, and other obligations would also increase if wages rise.
Poverty, Income Data to Guide Wage Review
The RTWPB said it will evaluate the positions presented by both labor and employer groups as it works toward a “win-win” solution. If a wage increase is approved, the board’s order will be published in a newspaper of general circulation within the region before implementation.
Government stakeholders also presented socioeconomic data that will be considered in determining the wage adjustment. Cagayan Valley’s poverty incidence declined from 6.7 percent in 2012 to 4.4 percent in 2025, but labor officials noted that at least 257,000 people, or 44,000 families, remain below the poverty threshold.
For a family of five, the estimated amount needed to meet food and other household requirements is P15,273 per month, or P502 a day. Philippine Statistics Authority data on Average Family Income and Expenditures also showed that a family should have earned at least P322,000 annually in 2023 and P411,000 in 2025.
The region’s gross domestic regional output increased from P421 billion to P490 billion in 2025, representing an average 3.9 percent increase from the previous year, based on government data. Gross domestic product also rose to P564 billion in 2025.
The wage discussion ultimately reflects a broader economic question for Cagayan Valley: how much income households need to keep pace with daily expenses, and how much businesses can absorb without reducing employment. The RTWPB’s eventual decision will directly affect workers’ purchasing power while also shaping labor costs for private establishments across the region.
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