How Much is the Minimum Wage in Manila [New Rates in 2025]
Understanding the minimum wage is essential for both employees and employers in the Philippines, especially with Metro Manila’s current rate set at ₱645 per day as of January 2025.
This article explores the purpose of minimum wage laws, how the National Wages and Productivity Commission (NWPC) establishes and adjusts these rates, and who qualifies for minimum wage protections.
By offering a concise overview of these key topics, we aim to provide valuable insights into the implications of minimum wage regulations for workers across various sectors.
What is the Minimum Wage?
The minimum wage is defined as the lowest remuneration that an employer is legally required to pay their workers for their labor.
In the Philippines, this wage varies by region and sector, reflecting local economic conditions and the cost of living.
The minimum wage is intended to protect workers from unduly low pay and ensure they can meet basic living expenses.
The rates are adjusted by the National Wages and Productivity Commission (NWPC) and Regional Tripartite Wages and Productivity Boards (RTWPBs) in the Philippines.
Why Set a Minimum Wage?
Minimum wage laws are established to provide a safety net for workers, particularly those in vulnerable positions.
The primary objectives include:
- Ensuring fair compensation for labor
- Helping low-income households escape poverty
- Promoting social equity by providing a basic standard of living for all workers
Over time, the focus has shifted from merely safeguarding worker welfare to addressing broader economic issues such as poverty alleviation and economic stability.
How Does the NWPC Set Minimum Wage Rates?
The National Wages and Productivity Commission (NWPC) oversees the establishment of minimum wage rates in the Philippines through its regional boards.
The two-tiered wage system (2TWPS) process involves:
- Evaluating various factors such as the needs of workers and their families, employer capacity to pay, and economic conditions.
- Conducting regular reviews and adjustments based on petitions or economic changes.
- Implementing a regionalized approach that accounts for disparities in living costs across different areas of the country.
This system allows for a tailored approach to wage setting, ensuring that minimum wages are relevant to local economic realities.
What is the Current Minimum Wage in Metro Manila?
As of January 2025, the minimum wage in Metro Manila is ₱645 per day for non-agricultural workers.
This rate was established following Wage Order No. NCR-25, which took effect on July 17, 2024. Other rates include:
- Agricultural Workers: ₱608 per day
- Service and Retail Establishments (with 15 or fewer employees): ₱608 per day
- Manufacturing Establishments (with fewer than 10 employees): ₱608 per day
These adjustments reflect ongoing discussions about living wages and economic conditions in the region. Here’s a simple breakdown of the NCR current wage rates for your ease.
| Sectors/Industry | Previous Minimum Wage | New Wage Increase | New Minimum Wage Rate |
|---|---|---|---|
| Non-Agriculture | ₱610 | ₱35 | ₱645 |
| Agriculture (Plantation & non-plantation) | ₱573 | ₱35 | ₱608 |
| Service or retail establishments with 15 employees or less | ₱573 | ₱35 | ₱608 |
| Manufacturing companies with less than 10 workers | ₱573 | ₱35 | ₱608 |
Are Minimum Wage Rates Adjusted for Inflation?
Yes, minimum wage rates are periodically adjusted to account for inflation and changes in the cost of living.
The NWPC regularly reviews these rates to ensure they remain relevant and sufficient for meeting basic needs.
Adjustments can be initiated through petitions from labor groups or by the regional boards themselves based on economic assessments.
When Do the NWPC’s Regional Boards Issue a Wage Order?
The NWPC’s Regional Tripartite Wages and Productivity Boards (RTWPBs) issue wage orders typically following comprehensive evaluations of local economic conditions, cost of living, and worker needs.
These orders may be prompted by:
- Petitions from labor organizations
- Significant changes in economic indicators
- Regular reviews mandated by law
Wage orders are usually announced after thorough consultations with stakeholders from both the labor and management sectors.
Who Can Earn Minimum Wage in the Philippines?
In the Philippines, all workers in the private sector are entitled to earn at least the minimum wage set by their respective regional boards.
This includes employees in various sectors such as agriculture, retail, manufacturing, and services.
Who’s Exempted from Receiving It?
While the minimum wage is designed to protect workers, certain categories of employees are exempt from receiving the current minimum wage rate.
According to the National Wages and Productivity Commission (NWPC), the following groups do not qualify for minimum wage protections:
- Kasambahays: Domestic workers employed in private households.
- Workers for Individuals: Those who are hired directly by individuals for personal services.
Additionally, the Philippine Regional Boards may exempt specific businesses from adhering to minimum wage laws. These exemptions typically apply to:
- Distressed Establishments: This includes corporations, cooperatives, single proprietorships, partnerships, non-stock non-profit organizations, banks, quasi-banks, and establishments undergoing corporate rehabilitation.
- New Business Enterprises: Startups may be granted exemptions during their initial phase.
- Service or Retail Establishments: Businesses with fewer than 10 employees may also be excluded.
- Organizations Affected by Calamities: Companies that have suffered significant losses due to natural disasters or other emergencies.
- Other Exemptions: Any other businesses that meet NWPC criteria for exemption and can provide justifiable reasons.
If an employer wishes to apply for an exemption, they must do so within 75 days of the NWPC publishing a Wage Order’s Implementing Rules and Regulations (IRR).
It is advisable to submit applications early, as extensions are generally not granted.
It is important to note that any exemption is temporary, lasting only one year. After this period, employers are required to comply with minimum wage laws.
Note: The NWPC and Regional Boards have the authority to take legal action against businesses that fail to comply with these regulations under Section 12 of RA No. 6727, as amended by RA 8188.
This ensures that workers are ultimately protected and compensated fairly after any exemption period expires.
Optimize Your Earnings in Manila: Use Our BIR Income Tax Calculator
With the minimum wage in Metro Manila now at ₱645 per day, it’s essential to understand how this affects your income tax.
Our BIR Income Tax Calculator helps you accurately compute your tax obligations based on the latest wage rates.
Simply enter your earnings to determine your taxable income and net pay, ensuring you maximize your take-home salary while staying compliant with tax regulations.