Philippines backs away from $500 wage hike for domestic workers in GCC

Dubai: The Philippines has confirmed it will not enforce a planned wage hike for Filipino domestic workers in GCC countries, with salaries instead to be set by supply and demand, Qatar’s Al Rai reported.

The announcement was made by Hans Leo Cacdac, Philippine Secretary of Migrant Workers, following talks in Doha on Wednesday with Qatar’s Minister of Labour, Dr. Ali bin Samikh Al Marri. Cacdac said the wage-setting mechanism would be reviewed to strike a balance between the interests of both sides.

His remarks followed Gulf concerns over Manila’s unilateral decision, announced in August, to increase the minimum salary for overseas domestic staff from $400 to $500. The move, introduced without prior consultation, sparked concern among GCC states, which remain the largest employers of Filipino household workers.

During the meeting, Al Marri reiterated the GCC’s objection to the absence of coordination despite existing communication channels and bilateral agreements.

He underlined that labour laws in the region already provide protections for all workers while balancing employer rights. He also called for a unified employment contract for Filipino workers to ensure transparency, fairness, and clear procedures to prevent irregular practices.

Manila had earlier defended the reforms as part of President Ferdinand Marcos Jr.’s directive to uphold the dignity and welfare of overseas Filipino workers.

Alongside the wage increase, the Department of Migrant Workers announced additional measures, including mandatory annual medical examinations, emergency treatment in the early phase of employment, and employer-funded care for work-related illness or accidents. A 60-day transition period was initially set for agencies and employers to update contracts.

Talks between GCC and Philippine officials are continuing in a bid to safeguard workers’ rights while maintaining a sustainable and mutually acceptable recruitment framework.