Challenges faced by Filipino workers

In 2024, the Philippines recorded an employment rate of 96.1 percent, translating to 48.16 million workers. That figure, however, masks a deeper reality: an employed Filipino is defined as someone who worked at least one hour during the survey period. The gap between having a job and having a decent one is where the real story lies.

Wage and salary workers now account for 63.8 percent of the employed population, up from 62.7 percent the year prior. That shift toward formal employment sounds like progress, but the numbers also show how far the country still has to go. The Department of Labor and Employment (DOLE) assisted 2.4 million workers in finding employment in 2024, and provided skills training to 179,105 young Filipinos through youth employability programs. Yet the structural issues that keep wages low and protections weak remain largely intact.

How the labor market is structured

The labor market is not a single story. Formal wage workers sit alongside millions in the informal economy, displaced workers from the POGO ban, and child laborers who have dropped in number but shifted toward older age groups. Each segment faces different barriers, but the common thread is that the system has not caught up with what workers actually need to live on.

Wage policy and the poverty line problem

Fourteen of the 16 Regional Tripartite Wages and Productivity Boards approved daily minimum wage increases in 2024, ranging from P21 to P75. The adjustments directly benefited an estimated 3.8 million minimum wage earners, with another 7.3 million expected to benefit indirectly from wage corrections. The highest minimum wage is P645 in Metro Manila, while the lowest is P361 in the Bangsamoro Autonomous Region.

Here is the catch: wage orders issued at year’s end did not lift minimum wages above the official poverty line in any region. The regionalized wage mechanism has been criticized for institutionalizing poverty wages. Organized labor demanded another round of increases, proposing a P150 daily hike. The Senate approved a P100 minimum wage increase in February 2024, but the House Labor Committee did not advance the proposal, effectively killing it despite holding hearings on other matters.

Inflation in 2024 averaged 3.2 percent, lower than the previous year, but it still eroded wage purchasing power. For the bottom 30 percent of income households, inflation was 4.3 percent, hitting minimum wage earners and informal workers hardest. The average wage gap sits at P761 per day, meaning the difference between what workers earn and what they need is not small.

Social protection gaps and the PhilHealth battle

Social protection remains a patchwork. The Tulong Panghanapbuhay sa Ating Disadvantaged/Displaced Workers (TUPAD) program provided emergency employment to over 3.18 million individuals, but critics call it a short-term fix lacking long-term benefits. Displaced POGO workers received assistance from DOLE, but only 1,230 out of an expected 27,790 Filipino employees affected by the ban were reached.

Public health insurance faced its own crisis. President Ferdinand Marcos Jr. transferred P60 billion from PhilHealth to unprogrammed national budget items. The Supreme Court halted a subsequent P29.9 billion tranche in October. The labor coalition Nagkaisa intervened in the Supreme Court to oppose transfers totaling P90 billion from PhilHealth. In December, the bicameral conference committee removed PhilHealth subsidies and other social service cuts from the national budget, but the episode left workers uncertain about whether their health insurance would remain intact.

Workers now face a 5 percent higher social security contribution in 2025, reducing take-home pay for private sector laborers. The government could subsidize the employee share but is unlikely to do so under the current administration, according to the Peoples Dispatch analysis.

Labor rights, inspections, and the legal framework

DOLE inspected over 30,000 establishments in 2024, benefiting 3.28 million workers. The labor education program reached more than 948,000 workers, employers, and students. The Philippines ratified ILO Convention 81 on labor inspection and became the first Asian country to ratify ILO Convention 190 to eliminate workplace violence and harassment. Implementation rules for Republic Act No. 11996, known as the Eddie Garcia Law, now mandate fair contracts and work conditions for TV and movie industry workers. Revisions to Republic Act No. 11360, the Service Charge Law, clarified that all workers must receive a fair share of service charges.

These are real advances. But workers continue to face low wages, job insecurity, attacks on union rights, and insufficient access to social protections like healthcare and unemployment insurance. Migrant workers and seafarers face prolonged delays in receiving monetary benefits despite favorable court rulings. The gap between what the law promises and what workers experience on the ground remains wide.

What workers can do and what needs to change

Engage with DOLE programs and job fairs

DOLE organized 94 job fairs nationwide on Labor Day in 2024, linking job seekers to local and overseas employers. In September, the “Bagong Pilipinas Job Fair” offered over 67,000 job vacancies across 915 employers. In October, a specialized job fair offered nearly 7,000 vacancies for displaced POGO workers. These events are a direct entry point for workers looking for formal employment, especially those affected by industry shifts.

Understand the regional wage board process

Minimum wage adjustments go through Regional Tripartite Wages and Productivity Boards. Workers and labor groups can file petitions for wage increases at their regional board. The process is political and slow, but it is the formal mechanism available. Knowing which board covers your region and how to submit a petition is the first step in advocating for a living wage.

Monitor social security and PhilHealth contributions

The 2025 social security contribution increase will reduce take-home pay. Workers should verify that employers are remitting the correct amounts to the Social Security System (SSS), PhilHealth, and the Pag-IBIG Fund. Discrepancies can be reported to DOLE or the respective agencies. The PhilHealth funding battle also means workers should keep records of their contributions and understand what benefits they are entitled to, especially in case of medical emergencies.

Support labor coalitions and advocacy groups

Groups like Partido Manggagawa campaign for wage hikes, regular jobs, social services, and national sovereignty under their “Apat na Dapat” platform. They support public laundromats, whole-day childcare centers, and the Prevention of Adolescent Pregnancy bill. Labor-based groups have been pushed out of the party list system, which has been taken over by electoral vehicles for politicians unable to compete in district elections. Supporting organizations that advocate for workers’ interests at the policy level is one way to push for structural change.

Frequently asked questions

What comes next

The 2024 data shows progress in employment numbers, wage adjustments, and legal protections. But the structural problems — low wages that fall below the poverty line, insecure work, weak social protection, and a political system that often sidelines labor interests — remain unresolved. The 2025 outlook calls for comprehensive labor reform: living wages, an end to contractualization, stronger union rights, and genuine worker participation in decision-making. For now, the most practical step is to stay informed, use the programs that exist, and support the organizations pushing for deeper change.

If this was useful, you might also want to read how green ride-hailing could reshape urban transport and jobs in the Philippines.

Sources

Electric vehicles in the Philippines: hype or hope for a greener future — Explores how industry shifts affect workers and the broader economy.

Challenges persist for workers despite labor advancements. BusinessMirror, 2025.

2024 in review: Philippine workers fight for better wages and social protections. Peoples Dispatch, 2025.

Yeander: Transforming labor — how 2024 shaped a new era for Filipino workers. Manila Bulletin, 2024.