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Small businesses may apply for wage increase exemptions

The Department of Labor and Employment has clarified that small enterprises and disaster-affected employers can seek relief from mandatory wage hike orders. Businesses meeting specific criteria may file for exemptions from the wage increase requirements.

LSN Philippines · 29 September 2026

MANILA — Small businesses struggling with labor costs now have the option to seek exemptions from wage increase orders, according to the Department of Labor and Employment (Dole).

The agency announced that retail and service establishments employing fewer than 10 workers may apply for relief from wage hike mandates. Additionally, employers whose operations have been disrupted by natural disasters or human-induced calamities are eligible to file for exemptions.

Dole said the exemption process allows affected businesses to present their circumstances and seek temporary relief from wage adjustment requirements. The move aims to balance worker welfare with the operational viability of smaller enterprises facing financial hardship.

Employers interested in pursuing an exemption must submit their applications through the appropriate Dole regional office, providing documentation of their business size, current operations, and the circumstances warranting exemption consideration. The department will evaluate each case individually to determine eligibility.