Overview of Regional Minimum Wage Rates in the Philippines
The minimum wage in the Philippines varies by region to reflect different economic conditions and living costs. Unlike many countries, the Philippines does not have a national minimum wage. Instead, the Regional Tripartite Wages and Productivity Boards (RTWPBs) regularly review and adjust minimum wage rates for their respective regions.
This system ensures that minimum wage considers the economic realities of each region, providing a more equitable approach to wage setting.
Here is a summary of the latest minimum wage rates in the Philippines as of 2026 after the wage increase:
| Region | Daily Minimum Wage (PHP) |
| Metro Manila (National Capital Region (NCR)) | PHP 658 – PHP 695 |
| Cordillera Administrative Region (CAR) | PHP 505 |
| Ilocos Region (Region I) | PHP 435 – PHP 468 |
| Cagayan Valley (Region II) | PHP 460 – PHP 480 |
| Central Luzon (Region III) | PHP 435 – PHP 550 |
| CALABARZON (Region IV-A) | PHP 425 – PHP 560 |
| MIMAROPA (Region IV-B) | PHP 455 |
| Bicol Region (Region V) | PHP 400* |
| Western Visayas (Region VI) | PHP 404 |
| Central Visayas (Region VII) | PHP 404 |
| Eastern Visayas (Region VIII) | PHP 404 |
| Zamboanga Peninsula (Region IX) | PHP 439 – PHP 464** |
| Northern Mindanao (Region X) | PHP 485 – PHP 500** |
| Davao Region (Region XI) | PHP 404* |
| SOCCSKSARGEN (Region XII) | PHP 443 – PHP 460 |
| Caraga (Region XIII) | PHP 455 – PHP 475** |
| Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) | PHP 404 |
*Wage determination process scheduled for early 2026
**Rates upon full implementation of all tranches
Latest Minimum Wage Rates in Metro Manila
Under Wage Order No. NCR-26, which took effect on July 18, 2025, the minimum wage for private sector workers in Metro Manila increased by PHP 50 per day. This was the highest increase ever granted by the NCR wage board.
The current minimum wage rates in Metro Manila are:
- Non-Agriculture Workers: PHP 695 per day (increased from PHP 645)
- Agriculture Workers: PHP 658 per day (increased from PHP 608)
- Service and Retail Establishments (employing 15 workers or less) and Manufacturing Establishments (employing less than 10 workers): PHP 658 per day.
This increase benefits approximately 1.2 million minimum wage earners in the National Capital Region.
Recent Regional Wage Increases (Late 2025 – Early 2026)
1. Cordillera Administrative Region (CAR)
Effective December 30, 2025, Wage Order No. CAR-24 increased the daily minimum wage for private sector workers in the Cordillera region from PHP 470 to PHP 505—a PHP 35 increase. The wage increase applies to all minimum wage earners in the Cordillera regardless of their position, designation, or status, and irrespective of the method by which their wages are paid. Government workers are not covered by this order. Domestic workers in CAR also received higher wages under Wage Order No. CAR-DW-07, increasing monthly pay from PHP 6,000 to PHP 6,600, effective December 30, 2025.
2. MIMAROPA (Region IV-B)
Effective January 1, 2026, MIMAROPA implemented a simplified single minimum wage rate of PHP 455 per day for all establishments, regardless of size. This replaced the previous tiered structure of PHP 430 for establishments with 10 or more workers and PHP 404 for smaller establishments. Domestic workers in MIMAROPA now receive a minimum monthly wage of PHP 7,000.
3. Northern Mindanao (Region X)
Wage Order No. RX-24 grants a PHP 39 daily wage increase for private sector workers in Northern Mindanao, implemented in two tranches:
- First tranche (PHP 25): Effective January 16, 2026
- Second tranche (PHP 14): Effective May 1, 2026
Upon full implementation, minimum wage rates will be:
- Wage Category I (PHP 500): Cities of Cagayan de Oro, Iligan, Malaybalay, Valencia, Gingoog, El Salvador, Ozamiz; Municipalities of Tagoloan, Villanueva, Jasaan, Opol, Maramag, Quezon, Manolo Fortich, and Lugait
- Wage Category II (PHP 485): All other areas Domestic workers in the region will receive a PHP 500 monthly increase under Wage Order No. RBX-DW-06, bringing their minimum monthly wage to PHP 6,500.
3. Caraga (Region XIII)
Wage Order RXIII-20 grants a PHP 40 daily wage increase for private sector workers in Caraga, implemented in two tranches:
- First tranche (PHP 20): Effective January 3, 2026 (PHP 435 → PHP 455)
- Second tranche (PHP 20): Effective May 1, 2026 (PHP 455 → PHP 475)
Domestic workers in Caraga received an increase from PHP 6,000 to PHP 6,500 per month under Wage Order RXIII-DW-06.
Zamboanga Peninsula (Region IX)
Zamboanga Peninsula is implementing a two-tranche wage increase in 2026:
- First tranche (January 2026): Non-agricultural workers in companies with 10 or more employees increase from PHP 414 to PHP 439
- Second tranche (June 2026): Further increase to PHP 464
Upcoming Wage Determinations
The Regional Tripartite Wages and Productivity Boards in Davao Region (Region XI) and Bicol (Region V) are scheduled to commence their minimum wage determination processes in January and February 2026, respectively.
Proposed Nationwide Legislated Wage Hike: Latest Developments
Significant legislative efforts are underway for a nationwide minimum wage increase, separate from regional board adjustments.
- House Approves PHP 200 Hike: On June 3, 2025, the House of Representatives approved House Bill 11376 on its third and final reading. This bill proposes a PHP 200 across-the-board daily increase for minimum wage earners in the private sector. The bill passed with 172 affirmative votes, 0 negative votes, and 1 abstention.
- Senate’s Earlier Proposal: The Senate previously approved Senate Bill 2534 in 2024, proposing a more modest PHP 100 daily increase.
- Bicameral Conference Needed: The differing amounts mean both chambers of Congress must convene a bicameral conference committee to reconcile their respective versions. Congress adjourned on June 11, 2025, before final deliberations could be completed.
- President’s Stance: On June 5, 2025, the Presidential Communications Office stated that President Ferdinand R. Marcos Jr. will carefully study the potential economic implications of the proposed increase. The President emphasized balancing worker welfare with business sustainability and mentioned consulting the regional wage boards. He has not yet indicated whether he is inclined to sign a specific amount but reaffirmed his commitment to workers’ interests.
If a reconciled bill is passed by both chambers and signed into law by the President, it would be the first legislated nationwide wage hike since the Wage Rationalization Act in 1989.
The proposed legislation includes several provisions:
- Incentives for small businesses to help shoulder the higher wage bill
- Exemptions for registered Barangay Micro Business Enterprises (BMBEs)
- Prohibition on reducing existing benefits to offset the wage increase
- Penalties for non-compliance ranging from PHP 100,000 to PHP 500,000 and/or imprisonment
Labor groups strongly advocate for the higher PHP 200 increase, while concerns about potential impacts on businesses, especially smaller enterprises, and inflation remain part of the discussion. The government has indicated potential assistance for businesses that might struggle with a significant hike.
Hiring in the Philippines: What Foreign Employers Should Know
While the minimum wage provides a baseline, competitive salaries in the Philippines for skilled professionals often exceed these figures. However, even with higher wages for experienced roles, international companies can achieve significant cost savings—typically reducing hiring expenses by 30-60% compared to markets in the US, Australia, and the UK.
Understanding the Employer of Record (EOR) for Foreign Employers
An Employer of Record is a third-party service provider such as RecruitGo that legally An Employer of Record is a service that legally employs staff on your behalf, providing them with all the rights and benefits of formal employment. This is far beyond what a freelance or contractor arrangement might offer.
With an EOR, foreign companies hiring in the Philippines can:
- Ensure Compliance: Navigate local labor laws and employment regulations with confidence, reducing the administrative and legal burdens that come with international hiring.
- Offer Legal Employment Benefits: Ensure that your remote team members receive full employment benefits, including health insurance, paid leave, and other statutory benefits that come with being an official employee.
- Mitigate Legal and Tax Risks: Avoid the risk of establishing a permanent presence in the Philippines, which could otherwise trigger local tax obligations and regulatory complications.
- Simplify Local Hiring: Bypass the need to set up a local legal entity, saving you the time and expense associated with forming and maintaining a Philippine branch or subsidiary.
By partnering with an EOR, you provide your remote team with a secure, compliant employment framework, while simultaneously minimizing risks associated with local employment laws.
Learn more about our EOR service in the Philippines.
