PHL labor groups dispute ILO findings on riders’ earnings

By Erika Mae P. Sinaking

LABOR GROUPS are pushing back against preliminary findings of an International Labour Organization (ILO) study on the Philippine platform economy that suggested that riders and drivers earn significantly more than the national minimum wage.

The draft study titled “2025 Platform Work Survey: Philippines,” a copy of which was obtained by BusinessWorld, found that logistics and ride-hailing workers earn a mean net weekly income of P6,704, while some online freelancers and virtual assistants earn as much as P26,387 a week.

The findings, presented at the 2026 National Tripartite Conference on Jan. 29, showed that 73% of riders choose platform work for its flexibility and ability to set their own schedules, while 48% think the pay is better than other available jobs.

But labor representatives said the figures are overstated and fail to reflect the actual costs of working in the gig economy.

In response, ILO Philippines said the findings were “preliminary and strictly draft,” shared only for technical validation and dialogue.

“These findings are not final, not endorsed, and not intended to be cited as definitive conclusions,” the ILO said in a Viber message, adding that the validation process lets stakeholders question assumptions and clarify context to ensure the final report reflects Philippine realities.

Federation of Free Workers Vice-President for Research, Advocacy and Partnerships Julius H. Cainglet described the release as premature.

“The comparison is even malicious,” he told BusinessWorld via teleconference on Tuesday. “They compared the minimum wage to the weekly earnings supposedly made by platform economy workers — it’s almost like comparing apples to oranges,” he added.

He argued that the minimum wage is based on an eight-hour workday, while the reported weekly earnings may include excessive overtime and workers managing multiple platform accounts.

Geoffrey P. Labudahon, national coordinator of RIDERS-SENTRO, said the study appears to cite gross rather than net income.

“The earnings look large because they are gross. They do not account for maintenance, fuel and phone data needed to stay online,” he said by telephone.

After deducting fuel costs of about P350 daily, mobile data and long-term maintenance such as tires and belts, a rider’s take-home pay may fall below the P695 daily minimum wage in Metro Manila, he pointed out.

Labor groups also questioned the study’s portrayal of flexibility. Mr. Labudahon said platform policies have shifted toward stricter scheduling in recent years, with assigned shifts and “auto-accept” features that penalize riders who decline orders.

On social protection, while the study found that 90% of workers have access to some benefits, labor leaders said most riders pay their own Social Security System and PhilHealth contributions as self-employed people.

“We haven’t met a single person who has a retirement plan or health insurance from the platform companies,” Mr. Labudahon said.

He urged the ILO to engage more systematically with riders’ unions and revisit the study’s methodology, particularly its treatment of expenses and unpaid labor time.

The ILO said it remains committed to neutrality, technical rigor and social dialogue as it finalizes the report.