Sagip Trabaho: What the New NCR & Central Visayas Wage Hikes Mean for Small Businesses

Metro Manila’s minimum wage just went up by ₱60/day, and Central Visayas follows on October 14 with a ₱42 increase. The government is now offering a 90-day wage subsidy under TUPAD to help small businesses cope. If you run an SME in NCR or Region VII, here’s what changed, who qualifies, and how to act before deadlines.

What Changed: New Minimum Wage in Metro Manila

Effective: September 26, 2026

Non-agricultural workers in NCR:

• Old rate: ₱695/day
• New rate: ₱755/day (+₱60)

Agriculture, small retail/service (≤15 workers), small manufacturing (<10 workers):

• Old rate: ₱658/day
• New rate: ₱718/day (+₱60)

Coverage: Around 1.1 million minimum-wage earners in NCR.

This increase comes from Wage Order No. NCR-28, approved by the National Wages and Productivity Commission.

The Government’s Response: Sagip Trabaho Wage Subsidy

To cushion the impact on small businesses, DOLE launched the Sagip-Trabaho assistance program, implemented under TUPAD (Tulong Panghanapbuhay sa Ating Disadvantaged/Displaced Workers).

Who it helps: Eligible micro, small and medium enterprises (SMEs) struggling to absorb the wage hike.

What it covers: The ₱60/day wage differential in NCR (and the corresponding differential in Central Visayas).

Duration: 90 days covering October, November, December 2026

Worker cap: Each qualified SME may register up to 35 workers for the subsidy.

Estimated cap: Up to around ₱140,000 per qualified SME over the 3 months, depending on headcount.

Goal: Prevent layoffs and closures during the holiday season while businesses adjust.

Labor Secretary Francis Tolentino emphasized that DOLE will “pay for the difference” to support both employers and workers through Christmas.

Who Qualifies and How to Apply

To join Sagip Trabaho, MSMEs must submit:

• Be a registered MSME (DTI registration or certificates).
• Show financial strain or difficulty absorbing the wage increase.
• Have a clear employee roster with positions and current daily rates.

Applications can be filed online (via DOLE’s portal, once guidelines are released) or in person at DOLE regional offices.

Detailed guidelines are expected this week. Distressed firms can also apply for a wage order exemption within 75 days if they can prove financial hardship, with supporting documents from DTI and audited statements.

Beyond Metro Manila: Central Visayas Also Affected

The program isn’t limited to NCR. It will also cover qualified employers in Central Visayas, where a separate wage increase takes effect on October 14, 2026:

• Class A areas: New minimum ₱582/day
• Class B areas: New minimum ₱542/day
• Increase: ₱42/day

This is especially relevant for small businesses in Cebu, Bohol, Negros Oriental, and Siquijor.

What Small Business Owners Should Do Now
Use this checklist:

1. Audit your payroll. Identify which employees are at or near the new minimum. Compute the additional monthly cost from the ₱60 (NCR) or ₱42 (Central Visayas) increase.
2. Check your eligibility. Confirm your DTI registration and business size classification. Prepare recent financial statements and cash-flow summaries.
3. Prepare documents for Sagip Trabaho. DTI certificates/registration. Employee list with positions and current daily rates. Basic financials (income statement, bank statements, etc.)
4. Watch for DOLE guidelines. Monitor DOLE regional pages and official announcements for the application portal and forms.
5. Consider an exemption (if truly distressed). If the wage hike threatens business viability, explore the 75-day exemption window with proper documentation.