What Is The Minimum Wage In The Philippines

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Did you know that the Philippines has a minimum wage? This post will look at the current minimum wage rate in the Philippines and how it’s been increasing over time. We’ll also give you the minimum wage in Metro Manila, Western Visayas, and Cebu City. So, if you’re curious about the minimum wage in the Philippines, keep reading!

What is the Minimum Wage in the Philippines?

The minimum wage is the lowest amount an employee can receive as decided by law. The specific minimum wage rate in the Philippines will depend on your region, province, or locality. The Regional Tripartite Wage and Productivity Board sets this amount every three years.

The Minimum Wage Law of 2013 (RA No. 6727) provides the basis for setting minimum wage rates in the Philippines. This law was enacted to prevent workers from being exploited and ensure that they received a just and decent wage. Under this law, the Regional Tripartite Wage and Productivity Boards are tasked with setting minimum wage rates.

Minimum Wage in Metro Manila

The Regional Tripartite Wages and Productivity Board – NCR issued Wage Order No. NCR-23 on 13 May 2022, granting a wage increase to workers in the non-agriculture and agriculture sectors. The new minimum wage rate is now PhP570 for workers in the non-agriculture sector and PhP533 for workers in the agriculture sector. This is the third wage order of the RTWPB-NCR since the start of 2022.

The minimum wage rates have been incrementally increased over the past year to keep up with the rising cost of living in Metro Manila. A minimum wage is essential in ensuring that workers can earn a decent living wage. With the new minimum wage in place, workers in Metro Manila will have more purchasing power to meet their basic needs.

Related: How to Register Your Business as Barangay Micro Business Enterprise (BMBEs)

Minimum Wage in Western Visayas

The Regional Tripartite Wages and Productivity Board – Western Visayas issued Wage Order No. RBVI-26 provides a wage increase for workers in the non-agriculture, industrial and commercial establishments of PhP55 and PhP110, bringing the daily minimum wage in the region to PhP450 and PhP420 for those employing more than ten workers and those employing ten or fewer workers, respectively.

In addition, the Board granted a PhP95 increase for workers in the agriculture sector, bringing the daily minimum wage to PhP410. It means that people who work in places like factories or stores will get paid more and work on farms.

What is the Minimum Wage in Cebu, Philippines?

The new minimum wage in Cebu is from 382.00 to 435.00, depending on the geographical area.

The geographical areas in Cebu are classified into three:

Class A minimum wage is 435.00.

  • Cities of Carcar
  • Cebu
  • Danao
  • Lapulapu
  • Mandaue
  • Naga
  • Talisay
  • Municipalities of Compostela, Consolacion, Cordova, Liloan, Minglanilla, San Fernando or Expanded Metro Cebu

Class B minimum wage is 392.00.

  • Bais
  • Bayawan
  • Bogo
  • Canlaon
  • Dumaguete
  • Guihulngan
  • Tagbilaran
  • Tanjay
  • Toledo

Class C minimum wage is 382.00.

  • Other Municipalities Not Covered Under Class A and Class B

FAQs on Minimum Wage Philippines

How often is the minimum wage reviewed?

The Minimum Wage Law of 2013 (RA No. 6727) provides the basis for setting minimum wage rates in the Philippines. This law was enacted to prevent workers from being exploited and ensure that they received a just and decent wage. Under this law, the Regional Tripartite Wage and Productivity Boards are tasked with setting minimum wage rates. The Minimum Wage Law requires the review of minimum wage rates every three years.

What factors are considered when setting the minimum wage?

The Regional Tripartite Wage and Productivity Boards to consider the following factors when setting minimum wage rates:

  • Cost of living and general level of wages in the region;
  • Economic conditions of the region;
  • Existing wage distribution; and
  • Productivity.

How is the minimum wage different from the living wage?

The Minimum Wage Law sets the minimum wage as the lowest amount an employer can pay a worker for their work. On the other hand, the living wage refers to the amount needed to cover basic needs such as food, shelter, and clothing. The living wage is typically higher than the minimum wage.

How do I file a complaint if I am not being paid the minimum wage?

If you believe you are not being paid the minimum wage, you may file a complaint with your region’s Regional Tripartite Wage and Productivity Board. You must provide evidence of your area’s salaries and the minimum wage rate.

I am an employer. How do I ensure that I am compliant with the Minimum Wage Law?

As an employer, you must post the current minimum wage rates in a conspicuous place in your workplace. You should also keep records of the wages paid to your workers. Upon request, these records must be made available for inspection by the Regional Tripartite Wage and Productivity Board.

Conclusion

The Philippine government has been trying to increase the minimum wage for its workers for a while now. They’ve just raised it again this year. Here’s a look at the current minimum wage in different parts of the country and how it’s changed over time. 

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