More than 1.56 million minimum-wage earners in Calabarzon are expected to receive a daily pay increase of up to P45 starting Oct. 26, following increases in Metro Manila and Central Visayas.
ALSO READ: Philippine Inflation Jumps to 7.2% in September, Raising Odds of Central Bank Hike
What the new wage order covers
The Regional Tripartite Wages and Productivity Board for Calabarzon approved Wage Order No. IVA-23 after reviewing the region’s economic conditions, the Inquirer reported. The full P45 increase adds P1,170 to monthly pay, though the actual amount varies by industry and municipality class. Labor Secretary Francis Tolentino said the Department of Labor and Employment will monitor employer compliance.
Hike follows other regions as inflation climbs
Calabarzon follows Metro Manila, where Wage Order No. 28 added P60 a day on Sept. 26, and Central Visayas and parts of the Negros Island Region, where a P42 increase took effect Oct. 14. The earlier NCR order providing a P85 increase remains under litigation.
The hikes come as prices accelerate. Philippine inflation rose to 7.2% in September from 6.1% in August, matching April’s three-year high, GMA News reported. Faster increases in food and utility costs drove the jump, and the year-to-date average of 5.4% sits above the government’s 2–4% target.
Stacked wage hikes reset the 2027 cost baseline
Most BPO agents already earn above the minimum wage, but stacked regional hikes and 7.2% inflation are lifting pay expectations across the labor market. Agents will compare offers against the higher cost of living, and providers will face pressure to adjust salaries, allowances, and transport support to hold attrition down.
For companies with Philippine operations or outsourcing contracts, this points to higher delivery costs in 2027. Buyers should review contract escalation clauses now. They should plan for rate adjustments and work with providers to achieve productivity gains, including through AI-assisted workflows, to offset part of the increase without compromising service quality.
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Cordero, T. (2026, October 6). Inflation snaps four-month easing, accelerates to 7.2% in
September 2026. GMA News. Retrieved from https://www.gmanetwork.com/news/money/economy/1004884/inflation-snaps-four-month-easing-accelerates-to-7-2-in-september-2026/story/
Perez, C. C. (2026, October 10). Calabarzon workers to get up to P45 wage hike starting Oct. 26 Inquirer.net. Retrieved from https://newsinfo.inquirer.net/2321100/calabarzon-minimum-wage-earners-to-get-p45-hike-starting-oct-26
