Metro Manila minimum wage rises by PHP 60 as first tranche of record increase takes effect

More than 1.1 million minimum wage earners in Metro Manila are set to receive higher pay after the first tranche of the National Capital Region's record PHP 85 minimum wage increase took effect on July 25, raising daily wages by PHP 60.

The increase, implemented under Wage Order No. NCR-27, lifts the daily minimum wage for workers in the non-agriculture sector from PHP 695 to PHP 755. Employees in the agriculture sector, service and retail establishments with 15 or fewer workers, and manufacturing firms employing fewer than 10 regular workers will see their daily minimum wage rise from PHP 658 to PHP 718.

The Department of Labor and Employment (DOLE) said the wage adjustment is the largest minimum wage increase ever granted in Metro Manila and is aimed at helping workers cope with rising living costs.

Pursuant to President Ferdinand R. Marcos Jr.'s directive to improve workers' quality of life, Labor Secretary Francis N. Tolentino said the increase is intended to strengthen workers' purchasing power amid inflationary pressures and higher electricity costs.

"The wage hike is intended to boost the purchasing power of Filipinos and help them keep up with economic conditions such as inflation and rising electricity costs," Tolentino said.

The labour department also reminded employers to comply with the new wage rates, warning that violations would be subject to penalties under existing labour laws.

DOLE urged employers and workers to address any wage distortion resulting from the increase through collective bargaining agreements between labour and management, particularly where employees earning above the minimum wage may seek corresponding salary adjustments.

To ease the impact on businesses, particularly smaller enterprises, Tolentino said the department will extend financial assistance to eligible micro, small and medium-sized enterprises (MSMEs) affected by the wage increase. Qualified businesses may also apply for exemption from the wage order within the prescribed 75-day filing period.

The remaining PHP 25 increase will take effect on January 20, 2027, completing the total PHP 85 wage adjustment approved for the National Capital Region.

Once fully implemented, the daily minimum wage for non-agriculture workers in Metro Manila will reach PHP 780, while employees in the agriculture sector, service and retail establishments with up to 15 workers, and manufacturing firms with fewer than 10 regular employees will receive PHP 743 per day.

The wage adjustment comes as the Philippine government continues efforts to improve workers' incomes while balancing the interests of employers and supporting businesses affected by higher labour costs.