ON July 18, 2025, the National Capital Region wage board raised the daily minimum pay from P645 to P695 — a 7.75-percent increase, which puts an employee’s gross monthly pay per six-day workweek to P18,070.
Factoring in mandatory government contributions and 13th-month pay further raises the worker’s salary to nearly P22,000 without overtime, holiday pay and night-shift differential.
It may not seem much, but for small and medium businesses like mine, it’s significant. Many of my team members earn minimum wage. Unless something changes, I will continue to pay more for the same output and performance, despite having tight profit margins that are being squeezed further by rapid inflation, geopolitical risks and unpredictable operating costs.
To be clear, I don’t mind paying people more — hard work deserves better pay. Moreover, when workers earn more, they spend more, thus driving consumption and supporting local businesses like mine.
Downside
However, this recent wage hike also has a downside. It’s forcing me to take a hard, honest look at my team. Are they pulling their weight? Or are some just coasting? Unfortunately, with the rising costs of wages, some don’t make the cut.
Previously, it was easier and cheaper to be a compassionate and understanding employer. Like a parent who hands over an iPad to stop a child from crying, I’ve occasionally chosen short-term peace over long-term discipline.
As wages rise, though, so does the cost of complacency. Through CCTVs, audits and the wage hike announcement, I began to see more clearly the shortcuts taken, the effort withheld and the rules bent.
Some people count on forgiveness, rather than doing things right. That kind of leniency felt kind before. Now, it just feels more expensive.
This wage hike isn’t just a cost — it’s a wake-up call. Higher wages naturally raise the bar. Higher pay should come with higher standards, not because we’re demanding more for less, but because we’re investing more and expecting the appropriate return.
If we are expected to pay more, we have the right and the responsibility to demand more — not perfection but real commitment, consistency and contribution.
Fairness
It’s not just about being harsh. It’s about being fair. Everyone should deserve their seat at the table. And if they can’t, now’s a good time to find a replacement who can help build the company long term.
While it’s hard to find good help, it’s a little easier now that compensation is more competitive. Since the announcement, I’ve noticed job ads are drawing more attention.
Applicants who used to ghost interviews now show up. When wages rise, more people want in. And with some companies downsizing or closing their doors altogether, the job market is quietly shifting back in favor of employers.
This presents an opportunity — and a dilemma. In every team, there are high performers, dependable team players, and, unfortunately, freeloaders.
Think back to college group projects. There’s always someone leading, someone helping and at least one person who contributes the bare minimum.
Businesses are no different. A team of five doesn’t always mean five people carrying equal weight. And when the stakes rise, an uneven team puts the entire structure at risk.
That’s why I’ve begun taking a harder look at my roster. Are my employees truly earning their keep? Do they uphold the company’s standards? Are they aligned with the values we’re trying to build? And if they’re not, then what are we going to do about it?
Sure, it’s not easy. Change never is. My managers resist hiring new people because training takes time, and new faces change the team dynamic.
But resisting change won’t make it go away — it just delays the inevitable. If we don’t adapt, we fall behind. I don’t want to be one of those companies that close, merely because I was afraid to make the hard decisions today.
Let us view this moment not as a burden, but as an opportunity to build a stronger, more accountable team, one that understands that higher wages come with a higher level of responsibility.
“Good enough” just isn’t good enough anymore. In the end, what got us here may not be what gets us where we need to go.
Business owners shouldn’t be villains for wanting value. We’re simply adapting to a new reality. And in this new scenario, mediocrity is expensive. We owe it to our customers, our employees and the future of our companies to make sure we’re getting it right.
Tina Khoe Ang is a retail entrepreneur managing 30 branches in Metro Manila, and a franchisor of a US frozen treat brand with 11 shops. She is a moderator at the Philippines HR Group on Facebook, and a cohost on The HR Café: Usapang Trabaho, Buhay, Atbp webshow on Sundays at 3 p.m. She may be reached at [email protected].
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