Overview of Regional Minimum Wage Rates in the Philippines
The minimum wage in Philippines varies by region to reflect the different economic conditions and living costs in each area. 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 these minimum wage rates.
This system ensures that the 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 2025 after the wage increase in July 2024:
| Region | Daily Minimum Wage (PHP) |
| Metro Manila (National Capital Region (NCR)) | PHP 645 – PHP 695 |
| Cordillera Administrative Region (CAR) | PHP 470 |
| 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 404 |
| 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 404 |
| Northern Mindanao (Region X) | PHP 404 |
| Davao Region (Region XI) | PHP 404 |
| SOCCSKSARGEN (Region XII) | PHP 404 |
| Caraga (Region XIII) | PHP 404 |
| Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) | PHP 404 |
Latest Minimum Wage Rates in Metro Manila
Following the wage order Wage Order No. NCR-25, on July 17, 2024, the minimum wage for private sector workers in Metro Manila increased by PHP 35 per day. This was approved by the Regional Tripartite Wages and Productivity Board – NCR.
The updated minimum wage rates in the Philippines Metro Manila region are as follows:
- Non-Agriculture Workers: Increased from PHP 610 to PHP 645 per day.
- Agriculture Workers: Increased from PHP 573 to PHP 608 per day.
- Service and Retail Establishments (employing 15 workers or less) and Manufacturing Establishments (employing less than 10 workers): Increased from PHP 573 to PHP 608 per day.
Implications of the Minimum Wage Increase
The July 2024 wage increase in Metro Manila was expected to directly benefit approximately 988,243 minimum wage earners in the region. However, labor groups have criticized the PHP 35 increase as insufficient, arguing that it falls short of the PHP 1,200 family living wage necessary for a decent standard of living.
Proposed Nationwide Legislated Wage Hike: Latest Developments (June 2025)
Significant legislative efforts are underway for a nationwide increase to the minimum wage, separate from the regional board adjustments. Here’s a summary of the latest developments as of early June 2025:
- House Approves PHP 200 Hike: On June 3rd, 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: This sets the stage for discussions with the Senate, which had previously, in 2024, approved its own version, Senate Bill 2534, proposing a more modest PHP 100 daily increase.
- Next Steps – Bicameral Conference: The differing amounts mean the two chambers of Congress will need to convene a bicameral conference committee to reconcile their respective versions of the bill and agree on a final proposed increase.
- 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 the need to balance the welfare of workers with the sustainability of businesses 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.
Future Outlook
If a reconciled bill is passed by both chambers and subsequently signed into law by the President, it would be the first legislated nationwide wage hike since the Wage Rationalization Act in 1989. The timing for the bicameral conference and the President’s ultimate decision remain key factors. Labor groups strongly advocate for the higher increase, while concerns about potential impacts on businesses, especially smaller enterprises, and inflation are also 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.
