Tuesday, July 28, 2026

PM REACTION TO PBBM’s SONA



The President’s address contained many technical reports, but it failed to meaningfully address the pressing concerns of workers, such as wages, wage reform, jobs, and other labor issues—even as President Marcos acknowledged that workers and the middle class should not be forgotten.

 

The proposed expansion of tax exemptions may benefit above-minimum wage earners, but it provides no relief to minimum wage workers and those earning even less, who have long been exempt from income tax. 

 

There was also no mention of the proposed P200 legislated wage hike and the abolition of provincial rate through the enactment of the proposed National Minimum Wage Law.

 

On the issue of corruption, the President reduced it to his personal grievance and the sacrifice involved in pursuing charges against Martin Romualdez. However, his speech fell short of proposing systemic reforms such as an anti-political dynasty law and electoral reforms.

 

On lowering electricity prices, removing the systems loss charge and the VAT on it will have only a minimal impact on consumers’ bills because these account for only a small portion of total electricity costs. The 12% VAT on generation, transmission, and distribution charges remains in place. Likewise, the persistence of monopolies in the power sector and the country’s continued dependence on imported fossil fuels for energy security remain the fundamental drivers of high electricity prices.

 

While the government’s endorsement of the US-led Pax Silica initiative is expected to generate high-quality jobs, the President made no mention of its potential implications for the country’s electricity and water security, nor of the risks it poses to the existing jobs of Filipino workers in the platform economy.

PRESS STATEMENT

Partido Manggagawa

07.28.2026


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