Minimum Wage in The Philippines: Rates, Trends & Compliance

What Is the Minimum Wage in the Philippines?

As of July 2025, the minimum wage in the Philippines varies by region and industry, reflecting the country's diverse economic conditions. In the National Capital Region (NCR), the daily minimum wage for non-agricultural workers is ₱695 in Metro Manila, effective 18 July 2025. This follows an increase of ₱50 by the the Department of Labor and Employment (DOLE), a boost from the previous minimum wage rate of ₱645 to benefit approximately 1.2 million workers. The increase was  approved by the NCR Regional Tripartite Wages and Productivity Board (RTWPB) through Wage Order No. 26.

In contrast, other regions have different minimum wage rates. For instance, in the Caraga Region, the minimum wage is ₱435 per day. These variations are due to differing costs of living and economic conditions across the country's regions.

It's important to note that these figures are subject to change, as the House Committee on Labor and Employment recently approved a substitute bill mandating a ₱200 daily across-the-board wage increase for private sector workers. However, this proposal is still under study and has not yet been enacted into law.

Regional Minimum Wage Rates in the Philippines in 2025

Here’s a summary of the latest daily minimum wage rates for private sector workers in the Philippines, sourced by the National Wages and Productivity Commission:

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Check out our detailed guide to average salaries in the Philippines

Proposed Nationwide Legislated Wage Hike for June 2025

For the first time in nearly 36 years, lawmakers are seriously advancing a proposal for a legislated nationwide minimum wage hike in the Philippines. With inflation and the cost of living continuing to rise, the move has been hailed as historic by labor groups — but it has also sparked debate among businesses, policymakers, and economists.

What's on the Table?

Two key proposals are now under consideration:

• House Bill (HB) No. 11376, or the "Wage Hike for Minimum Wage Workers Act," which seeks a ₱200 daily increase for all private-sector workers, regardless of region, industry, or employment status.
• Senate Bill (SB) No. 2534, which puts forward a more modest ₱100 daily increase.

Both measures cover workers in agriculture and non-agriculture sectors, and apply to contractual, probationary, and sub-contractual arrangements.

Where Things Stand in Congress

On June 4, 2025, the House of Representatives approved HB 11376 on its third and final reading, with 172 lawmakers voting in favor, 0 against, and 1 abstention. The bill now moves to a bicameral conference committee, where the House and Senate versions will be reconciled into a single measure.

Congress adjourned on June 11, 2025, before final deliberations could be completed. If passed and signed into law during the next session, the wage hike could be implemented as early as late 2025 or early 2026.

Key Provisions and Exemptions

The proposed legislation goes beyond a simple wage hike, laying out rules to balance worker protection with business sustainability:

• Incentives for small businesses: DOLE may provide support to help SMEs shoulder the higher wage bill.
• Exemptions for Barangay Micro Business Enterprises (BMBEs): These micro-scale enterprises would not be required to implement the wage increase.
• No reduction in existing benefits: Employers cannot offset the hike by cutting allowances or benefits already granted.
• Penalties for non-compliance: Employers who fail to comply face fines of ₱100,000–₱500,000 and/or imprisonment of two to four years.

Why This Matters

A nationwide legislated wage hike could mark a turning point in labor policy:

• For workers: A ₱100–₱200 increase would provide immediate relief for millions of minimum wage earners struggling with high living costs.
• For employers: Adjusting payrolls, planning for compliance, and possibly accessing government support will become critical tasks, especially for SMEs.
• For the economy: The big question is whether the wage increase will boost consumer spending and reduce poverty — or whether it could instead fuel inflation and strain businesses.

Minimum Wage vs Living Wage in Philippines

When we talk about wages in the Philippines, it's important to distinguish between the minimum wage, the legal floor set by government, and the living wage, which reflects how much workers actually need to live decently. The gap between these two figures says a lot about the everyday struggles of Filipino families.

What the Living Wage Really Means

Unlike the minimum wage, which is designed as a regulatory baseline, the living wage is calculated based on the real cost of basic needs. It includes not just food, housing, and utilities, but also essentials like transportation, education, healthcare, and a small buffer for emergencies.

As of April 2025, estimates from IBON Foundation placed the family living wage in Metro Manila at around ₱1,221 per day. By comparison, the prevailing minimum wage in the National Capital Region was only ₱695 per day at the time. That's a shortfall of more than ₱526 every day; nearly half of what a family truly needs to get by. In regions outside Manila, where minimum wages are lower, the gap is even wider.

Why the Gap Persists

This wage divide exists for several reasons. Prices for food, fuel, and transportation have climbed steadily in recent years, while wage adjustments often lag behind inflation. Regional wage boards set lower rates outside of NCR, assuming costs are lower, but in reality, many expenses like utilities and transportation remain just as high, leaving workers in those areas with even less purchasing power.

There's also a structural issue: minimum wage laws are designed to cover the basics, but not much more. Living wage calculations include long-term needs like education and healthcare, which families cannot easily do without, but which minimum wages often fail to account for. And because wage increases are politically sensitive, with businesses warning of inflation or job losses, adjustments are typically incremental and rarely catch up to the true cost of living.

How Does Minimum Wage Apply to Different Workers in the Philippines?

The application of minimum wage laws in the Philippines varies depending on the type of employment, industry, and specific worker categories. The Regional Tripartite Wages and Productivity Boards (RTWPBs) set minimum wage rates that consider regional economic factors, leading to differences across regions and sectors.

Full-Time Employee Wages

Full-time employees in the Philippines are entitled to the daily minimum wage rates set by the RTWPBs in their respective regions. These rates differ between non-agricultural and agricultural sectors and may also vary within sub-sectors. For example, in Northern Mindanao, the minimum wage rate is ₱434 – ₱461 as of 12 January 2025, while the rate for the agricultural sector is ₱446 – ₱461.

Part-Time Employee Wages

Part-time employees are generally entitled to receive a proportionate amount of the daily minimum wage based on the number of hours worked. The Labor Code of the Philippines mandates that employees should not receive less than the minimum wage for the hours they have worked, ensuring fair compensation regardless of full-time or part-time status.

Interns and Trainees

The entitlement of interns and trainees to the minimum wage depends on the nature of their engagement. If they are considered employees, they are entitled to receive at least the minimum wage. However, apprentices and learners who are part of duly approved training programs may receive a wage not less than 75% of the applicable minimum wage rate.

Expats

Expatriates working in the Philippines are generally subject to the same labor laws as local employees, including minimum wage regulations. However, many expats occupy positions that offer salaries well above the minimum wage due to their specialized skills and roles. Employers must ensure compliance with local labor laws when compensating expatriate workers.

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Factors Influencing Minimum Wage in the Philippines

Industry-Specific Variations

Minimum wage rates in the Philippines can vary significantly across different industries. For instance, sectors such as manufacturing and business process outsourcing (BPO) often offer wages that exceed the regional minimum due to higher demand for skilled labor and competitive pressures. Conversely, industries like agriculture may have lower minimum wage thresholds, reflecting economic realities and productivity levels within the sector.

Economic Conditions

Economic factors such as inflation and employment rates play a crucial role in shaping minimum wage policies. Rising inflation can erode the purchasing power of workers, prompting calls for wage adjustments to maintain living standards. Employment rates also influence wage policies, as high unemployment may lead to wage stagnation, while low unemployment can drive wage increases due to labor shortages.

Government Policies and Legislation

The Philippine government, through the Department of Labor and Employment (DOLE) and the RTWPBs, regularly reviews and sets minimum wage rates to ensure fair compensation for workers. Legislative measures, such as the proposed ₱200 daily wage increase, reflect ongoing efforts to address economic disparities and improve the welfare of workers. However, such proposals require thorough study and consideration of legal and economic implications before implementation.

Minimum Wage History and Trends in the Philippines

The minimum wage in the Philippines has undergone several adjustments over the years to address economic changes and the rising cost of living. For example, in 2022, the minimum wage in Metro Manila for non-agricultural workers increased from ₱537 to ₱570 per day. In 2023, it further rose to ₱610 per day. As of July 18, 2025, the rate stands at ₱695 per day for non-agricultural workers and ₱658 for agricultural workers following the latest ₱50 increase.

Future projections indicate potential further increases, especially with legislative proposals like the ₱200 daily wage hike currently under consideration. These trends underscore the government's commitment to ensuring that wage policies remain responsive to the needs of Filipino workers amidst evolving economic conditions.

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