Guaranteeing fair compensation for workers is an important part of Labor Laws in the Philippines, to ensure social justice. The Philippines minimum wage laws uphold the rights and well-being of employees across industries, establishing a minimum standard of living for Filipino workers and protecting them from exploitation.
In our thorough guide, you will find everything you need to know about the Philippines’ minimum wage laws. Understanding these rules, either as an employer or employee, is critical for promoting fair labor practices.
This Article Covers:
- What Is the Minimum Wage in the Philippines?
- History of the Philippines Minimum Wage Laws
- Who Is Eligible Under the Minimum Wage Laws in the Philippines?
- Employers Exempt From the Philippine Minimum Wage
- Who Is Responsible for Upholding the Philippines Minimum Wage Laws?
- Compliance with Minimum Wage Laws in the Philippines
- Employee Benefits for Minimum Wage Earners in the Philippines
- How Often Does the Minimum Wage in the Philippines Increase?
- Do All Regions in the Philippines Have the Same Minimum Wage?
What Is the Minimum Wage in the Philippines?
The Wage Rationalization Act, Republic Act No. 6727, sets the applicable minimum wage rates per region, province, and industry sector.
The daily wage rate varies from region to region in the Philippines. For non-agricultural jobs in Metro Manila, the current minimum wage stands at 695 Philippine pesos (PHP) per day.
As of October 2025, here is a summary of the current regional daily minimum wage in other parts of the country:
|
Region |
Minimum Wages |
| NCR | PHP 695 to PHP 658 |
| CAR | PHP 470 |
| Region I | PHP 435 to PHP 468 |
| Region II | PHP 460 to PHP 480 |
| Region III | PHP 435 to PHP 550 |
| Region IV-A | PHP 485 to PHP 600 |
| Region IV-B | PHP 404 to PHP 430 |
| Region V |
PHP 415 (Increasing to PHP 435 on December 1, 2025 |
| Region VI | PHP 480 to PHP 513 |
| Region VII | PHP 500 to PHP 540 |
| Region VIII | PHP 405 to PHP 435 |
| Region IX | PHP 401 to PHP 414 |
| Region X | PHP 446 to PHP 461 |
| Region XI | PHP 505 to PHP 510 |
| Region XII | PHP 430 |
| Region XIII | PHP 435 |
| BARMM | PHP 366 to PHP 411 |
The minimum wage rates established in the Philippine Labor Code, as amended by the Wage Rationalization Act, apply to all workers and employees in the private sector, regardless of their position, designation, or status, and regardless of the method by which their wages are paid, except:
- Household or domestic helpers, including family drivers and workers in the personal service of another
- Workers and employees in retail or service establishments that regularly employ not more than 10 workers
- Workers and employees in Barangay Micro Business Enterprises (Subject to the approval of the Department of Trade and Industry)
- Government sector employees
History of the Philippines Minimum Wage Laws
The Philippine government began developing minimum wage laws in June 1989 with the Wage Rationalization Act (RA No. 6727). Before this, the only wage differences were between agricultural and non-agricultural workers.
When RA No. 6727 was signed into law, it was declared that wages would henceforth be set on a regional basis by regional wage boards.
According to IBON Foundation, a non-profit development organization in the Philippines, as soon as RA 6727 was legislated, a PHP 25 wage hike was implemented. It was around a 39.1% increase and resulted in the non-agriculture basic wage reaching PHP 89 in all 17 regions.
Since regionalization, minimum wage increases have varied widely between regions in terms of frequency and percentage.
Who Is Eligible Under the Minimum Wage Laws in the Philippines?
The Philippines minimum wage policy applies to all workers in the private sector, regardless of their job title and employment status.
Wages must be paid at least once a month, but they can be paid every two weeks or twice a month at intervals of no more than 16 days. If wages are delayed owing to force majeure or circumstances beyond the employer’s control, the employer is required to pay the wages as soon as the force majeure or circumstances cease.
Lastly, the law prohibits interference in dispensing of wages, unauthorized wage deductions, withholding of wages without the worker’s consent, deductions to ensure employment, and retaliation against workers through the reduction of or refusal to pay wages. However, an employer may deduct from an employee’s wages when:
- Authorized by law: Deductions for insurance premiums that are advanced by the employer on behalf of the employee, as well as union dues, if the employer has acknowledged the right to deduct or the employee has permitted it in writing.
- Authorized by the employee: A written agreement by the employee for payment to a third party must be present, provided that the employer does not directly or indirectly gain any financial benefit from the transaction.
Employers Exempt from the Philippine Minimum Wage
Under Wage Order No. NCR-22, the following employers can exempt from paying minimum wage in the Philippines:
- Distressed establishments
- Retail or service establishments regularly employing no more than 10 workers
- Establishments adversely affected by calamities (e.g., natural and human-induced disasters)
However, for the employers to be exempted from paying the Philippine minimum wage, they should file an application with the Regional Tripartite Wages and Productivity Board. After careful consideration by the Board, the qualified applicant employer may be granted an exemption for a maximum period of 1 year.
If the decision was disapproved by the Board, it may be appealed to the National Wages and Productivity Commission within 10 days from the date the applicant received the decision.
Who Is Responsible for Upholding the Philippines Minimum Wage Laws?
The National Wages and Productivity Commission (NWPC) oversees the country’s wage policies. It sets the rules for determining fair minimum wages and reviews wage rates proposed by each region.
Each region has a Regional Tripartite Wages and Productivity Board (RTWPB), which decides the minimum wage rates for its area. These rates aim to maintain workers’ health, efficiency, and well-being while supporting national economic goals.
When setting wages, the boards consider factors like living costs, worker needs, inflation, employer capacity to pay, employment levels, and regional economic conditions.
Once a board recommends a new rate, it must be approved by the Secretary of Labor and Employment and then formalized through a Wage Order, subject to the President’s approval.
Compliance with Minimum Wage Laws in the Philippines
Under Republic Act 8188, employers who fail or refuse to comply with pay rate increases or adjustments are subject to legal penalties. Employers are liable to be fined between PHP 25,000 and PHP 100,000, imprisoned for two to four years, or both, at the discretion of the court.
Furthermore, the employer should pay an amount equal to double the underpaid benefits owed to the employees. If the offense is committed by a corporation, trust, firm, or organization, the responsible officers, which may include the president, vice president, CEO, general manager, managing director, or partner, are liable for imprisonment.
To ensure compliance and fair pay, it’s beneficial for businesses to use a work time calculator or a more sophisticated time tracking system that automatically records employee work hours, calculates correct pay, and helps comply with Philippines’ labor standards.
Track work hours and calculate wages more efficiently and accurately with a FREE Automated Time and Attendance Tracker like Jibble.
Employee Benefits for Minimum Wage Earners in the Philippines
Employee statutory benefits are legally mandated entitlements that should be provided by employers and regulated by government legislation. The benefits include:
- National Health Insurance Program Healthcare: Health coverage, including PhilHealth and the Social Security System, is mandatory for employees. Individuals should contribute a percent of their principal income, which is split equally between the employer and employee.
- Home Development Mutual Fund Pag-IBIG: This is a national savings plan for affordable housing. Employees and employers both contribute 2%. Pag-IBIG deposits are typically used to fund home loans, multi-purpose loans, disaster relief loans, and so on.
- Bonus or 13th-Month Pay: Another key benefit for employees in the Philippines is the 13th-month pay, which must be given to all rank-and-file employees on or before December 24 each year. The payment cannot be less than one-twelfth of the total basic salary earned by a worker. Employers must report compliance by January 15th each year.
Employers can also offer other benefits as an additional perk to supplement compensation packages beyond the statutory standards.
- Christmas Bonus: Employees are compensated in addition to their 13th-month payment to show appreciation for their services throughout the year.
- Allowances: Although allowances are not required in the Philippines, a few employers have begun to provide them. The most common allowances are for accommodation, transportation, medical care, and childcare.
Minimum-wage earners in the Philippines are not eligible for personal income tax as their yearly income is below PHP 250,000.
How Often Does the Minimum Wage in the Philippines Increase?
The Regional Tripartite Wages and Productivity Boards may set and adjust the minimum wage rates on a regular basis in order to improve them. Here are a few major considerations for how the Board decides to raise a region’s minimum wage:
- Cost of Living and Poverty Levels: Wages are based on the regional cost of living, using data from the Philippine Statistics Authority (PSA) such as inflation rates, food and non-food expenses, and poverty data. Urban areas like Metro Manila have higher wages due to higher living costs, while rural areas like Region XIII (Caraga) have lower rates.
- Economic Conditions and Employers’ Capacity to Pay: Regional wage boards assess the local economy, employment levels, and business conditions. Regions with strong industries can afford higher wages, while agricultural areas may offer less due to seasonal work and lower productivity.
- General Public Complaints or Petitions: When public hearings and consultations show a general discontent with extraordinary hikes in prices of basic goods and services. Petitions may also be filed by workers’ groups, employers, or individuals requesting wage adjustments to address rising living costs.
Learn about Labor Laws in the Philippines through our detailed guide.
Important Cautionary Note
When making this guide, we have tried to make it as accurate as possible. However, we do not give any guarantee that the information provided is correct or up-to-date. We therefore strongly advise you to seek advice from qualified professionals before acting on any information provided in this guide. We do not accept any liability for any damages or risks incurred by the use of this guide.
