Philippines Minimum Wage Guide for Employers

If you search for the minimum wage in most countries, you typically find a straightforward answer—a single number set by the federal government. Certain states or provinces may opt to set their own minimum wage, but it can’t be any lower than the federal minimum. However, the Philippines' minimum wage is quite different.

Due to the significantly different economic conditions across various regions, the minimum wage varies in nearly every part of the country, set by regional authorities. Not only that, different minimum wages are established based on the type of employment. This specific and flexible system makes the Philippines minimum wage rates quite susceptible to change. 

Suffice to say, for companies planning to set up shop in the Philippines, there is much to understand about the Philippines minimum wage to ensure compliance with global labor laws. Even if you’re an existing company or a new business using EOR, these updates are important for you. Here’s what you need to know:

Types of Employment in the Philippines

The Philippines is a country with a particularly wide array of employment sectors, each with its own specific employment regulations you need to be aware of. Whether it's in the agricultural sector or the diverse array of non-agricultural industries, different categories of employment have specific rights, responsibilities, and regulatory considerations. 

Agriculture

• Plantation: This type of employment involves work in agricultural settings where crops such as sugarcane, rice, corn, and other plantation crops are cultivated. Employees working in plantation agriculture perform the work of planting, harvesting, and maintaining crops.
• Non-plantation: Non-plantation agriculture includes employment in activities related to farming but excludes the plantation crops mentioned above. This includes working on smaller farms, raising livestock, poultry farming, and other agricultural activities that don’t meet the definition of plantation agriculture.

Non-Agriculture

Non-agricultural employment covers a wide range of industries and sectors outside the agricultural domain. This includes work in manufacturing, services, construction, retail, hospitality, information technology, finance, and other sectors. Here's a closer look at some of the key industries:

• Manufacturing: This is a big industry where people are manufacturing everything from electronic equipment and machinery to clothing and food products. It’s a big part of the economy, exporting and consumption, offering employment to people.
• Services: It's also one of the fastest-growing industries; it covers education, healthcare, legal services, and consulting. The business process outsourcing (BPO) industry is particularly prominent, leading the world in call centers and back office functions, being a go-to place for outsourcing. 
• Construction: The construction industry is also thriving with the government’s push for infrastructure development. Building homes, offices, and public infrastructure such as roads and bridges, it adds to employment towards urbanization and modernization. 
• Retail: This includes all the local stores and big shopping malls. It has jobs in sales, management, and logistics, very adaptable to consumer trends and preferences that are fast changing. 
• Hospitality: The Philippines has a thriving hospitality industry with its beautiful tourist destinations. Most of the jobs are in hotels, restaurants, and tourist services, especially in the popular tourist places. 
• Information Technology: Technology is constantly evolving and driving the IT sector. There are local and international tech companies ravenous for careers in the fields of software development, cybersecurity, and IT support. 
• Finance: These refer to roles in banking, insurance, and real estate—specifically, financial management and advisory services. It is a very important player in maintaining economic stability and growth in the Philippines.

Read Next: Global Hiring Guide: Philippines

Key Differences Between Agriculture and Non-Agriculture Sectors

There are some key differences between these two sectors, which include:

Wage rates 

Agricultural workers are subject to different wage rates due to the seasonal and often unpredictable nature of agricultural work. There are also different minimum wages in the Philippines (which vary by region) for plantation and non-plantation workers. 

Non-agricultural sectors have wage rates determined by consumer demand, technological changes, and economic policies, and it often offers more stable market conditions, leading to a higher wage rate.

Working hours

There are differences in the maximum allowable working hours for agricultural and non-agricultural workers. 

For example, non-agricultural workers typically have standard working hours prescribed by law, while agricultural workers have more flexible and extended working hours to accommodate seasonal demands.

Employment contracts

The terms and conditions of employment contracts will vary considerably between agricultural and non-agricultural workers. An example of this could be that agricultural workers will only be hired on a seasonal or temporary basis, while non-agricultural workers will have more stable and long-term employment contracts.

Benefits and protections

Agricultural workers are entitled to specific benefits and protections under the law, like provisions for housing, transportation, and healthcare, to address the unique challenges of agricultural work. 

More often than not, non-agricultural workers with stable jobs get more benefits, paid social security, access to labor rights, and safety of working place above their agricultural counterparts.

Learn more: Understanding De Minimis Fringe Benefits in the Philippines

The Regional Tripartite Wages and Productivity Board

The Regional Tripartite Wages and Productivity Board (RTWPB) is a government body established to regulate and set the Philippines minimum wage rates across its different regions. One of the RTWPBs’ main priorities is conducting regular assessments of economic factors, cost of living, and productivity levels within the specific region the board oversees.

The RTWPBs also recommend adjustments to minimum wage rates based on their assessments. These adjustments are necessary to make sure that workers receive fair wages that reflect changes in economic conditions and the cost of living in their specific region. If housing prices spike in one area of the Philippines, the RTWPB may recommend a minimum wage increase to prevent workers from being priced out.

The RTWPBs also play a vital role in resolving disputes related to wage and labor issues. They serve as venues for tripartite (meaning involving three different parties) consultations and negotiations between employers and workers' representatives to hear grievances and make sure that labor standards are upheld. 

Also, these boards conduct education and information campaigns to raise awareness about labor rights and regulations among employers and workers, promoting self-advocacy and up-to-standard work environments.

What is the Philippines' minimum wage?

In the Philippines, the minimum wage varies depending on the region and the type of employment. The minimum wage rates are determined by the RTWPBs and are frequently reviewed and updated based on the current economic situation of the region in question.

As of January 2026, the National Capital Region (NCR) minimum wage for non-agricultural workers stands at PHP 695 per day, maintaining the increase that took effect in 2025 under Wage Order No. NCR-26. This represents the highest daily minimum wage in the country, reflecting the rising cost of living in Metro Manila. 

Outside the NCR, daily minimum wage rates 2026 typically range from PHP 435 to PHP 550, depending on the specific region, industry classification, and establishment size. Several regions are implementing phased increases through multiple tranches throughout 2026.

Payroll cycle

The payroll cycle refers to the frequency at which employees receive their wages. In the Philippines, it’s common to pay employees on a monthly basis. That said, a monthly cycle isn’t mandatory, and some employers prefer a bimonthly or semimonthly payroll cycle.

The choice of payroll cycle will depend on factors such as company policy, industry standards, and the nature of the business. Companies with foreign offices or ownership are more likely to adopt a different cycle, as monthly payment is less common in regions like North America. Ensuring a suitable payroll cycle can also contribute to employee engagement and satisfaction.

Read next: HR’s Guide to Payroll Taxes in the Philippines

Pay date

As the term suggests, the pay date is the specific day on which employees receive their salaries. Employers typically establish a pay date based on their payroll schedule and the frequency of payroll cycles. Employers need to communicate the pay date clearly to employees to ensure transparency and avoid any confusion regarding when they receive their payment.

Working hours

Working hours in the Philippines are regulated by law to protect the rights and well-being of employees. The standard work week consists of 40 hours, with employees entitled to additional compensation for any work exceeding these hours. Employers must adhere to these regulations to prevent employee burnout and ensure fair compensation for overtime work, as laid out by the Philippine labor laws. 

Night shift differential

Employees who work during the night shift, defined as hours between 10 PM and 6 AM, are entitled to receive a night shift differential. This is an additional compensation typically set at 110% of the employee's regular wage rate. 

The night shift differential compensates employees for working during non-standard hours and makes it so employers provide fair compensation for working overnight. This additional pay recognizes the challenges and potential impacts on health and well-being that working during these hours can have. 

Overtime compensation

As we mentioned in our discussion of working hours, overtime compensation is provided to employees who work beyond the standard work hours or on rest days and holidays. Overtime pay rates typically range from 125% to 200% of the employee's regular wage rate, with higher rates applying to work performed on rest days and holidays. 

Employers have to accurately calculate and offer overtime compensation to employees who work more than their standard hours to remain compliant with labor regulations and give their workers fair treatment.

Read next: How to Compute Overtime Pay in the Philippines

The Provincial Philippines Minimum Wage

The provincial Philippines minimum wage is determined by a number of different factors, including economic conditions and the cost of living in different regions of the country. The Wage Rationalization Act (also known as RA 6727) lays out the framework for how and why to set minimum wage rates, taking into account the needs of workers and the current economic conditions in each province.

One of the key reasons for the variation in minimum wage rates is the differing cost of living and economic development levels in different regions. For example, provinces with higher living costs or more robust economies may have higher minimum wage rates compared to those in less well-off regions.

For example, in Metro Manila, which is one of the most developed and expensive regions in the country, the Philippines' minimum wage for non-agricultural workers is much higher compared to other provinces. As of 2026, the minimum wage in Metro Manila for non-agricultural workers is PHP 695 per day. Compare that to the Caraga Region in Mindanao, where the cost of living is generally lower compared to urban areas; the minimum wage for non-agricultural workers is set at PHP 475 per day (following a two-tranche increase with the final tranche effective 1 May 2026).

Tailoring the Philippines' minimum wage rates to the specific needs of workers and the economic realities of each province, the government sets the standard to promote fair compensation and economic development across the country.

View the Philippines minimum wage rate for all regions

Changes in the Philippines Minimum Wage

As mentioned above, the Philippine minimum wage across regions is much more fluid and prone to change than elsewhere, shifting to meet the needs of workers. Here are some of the changes that have happened over the recent years and the latest 2026 updates:

2023

National Capital Region

• For agriculture (non-plantation), the minimum wage increased from PHP 533 to PHP 573.
• For agriculture (plantation), the minimum wage increased from PHP 533 to PHP 573.
• For non-agriculture, the minimum wage increased from PHP 570 to PHP 610.

2024

Davao Region

As of 13 February 2024, the RTWPB for the Davao region has issued a wage increase of PHP 19 to take effect on 1 September 2024. When in effect, the change will look like:

• For agriculture (non-plantation), the minimum wage increased from PHP 438 to PHP 457.
• For agriculture (plantation), the minimum wage increased from PHP 438 to PHP 457.
• For non-agriculture, the minimum wage increased from PHP 443 to PHP 462.

2025-2026: Latest updates

The Department of Labor and Employment (DOLE) reports that more than 4.5 million minimum wage earners in the private sector benefited from wage hikes across 14 regions in 2025, with many increases carrying into 2026. According to current projections, the Philippines minimum wage 2026 is trending around PHP 660 per day nationally, with significant regional variations.

Here are somekey minimum wage updates for 2026:

National Capital Region (NCR):

• The minimum wage for non-agriculture workers remains at PHP 695 per day in 2026, following the PHP 50 increase implemented under Wage Order No. NCR-26 in mid-2025.
• The minimum wage for agricultural workers stands at PHP 573 per day.

Caraga Region:

• A total increase of PHP 40 implemented in two tranches
• First tranche (PHP 20): Effective January 3, 2026, raising the daily wage from PHP 435 to PHP 455
• Second tranche (PHP 20): Effective May 1, 2026, bringing the daily minimum wage to PHP 475

Northern Mindanao (Region X):

• A total increase of PHP 39, split into two tranches
• First tranche (PHP 25): Effective January 16, 2026
• Second tranche (PHP 14): Effective May 1, 2026
• Upon full implementation, rates will range from PHP 485 to PHP 500, depending on location

Zamboanga Peninsula (Region IX):

• Two-tranche system for non-agricultural workers in companies with 10 or more employees
• First tranche: January 2026, increasing wages from PHP 414 to PHP 439
• Second tranche: June 2026, further raising to PHP 464

MIMAROPA:

• Effective January 1, 2026, the region adopted a single minimum wage rate of PHP 455 per day across all establishment sizes
• The monthly minimum wage for domestic workers increased to PHP 7,000

Central Luzon (Region III):

• The minimum wage increases are being implemented in two tranches, with the first coming into force on October 17, 2024, and the second tranche effective April 16, 2025, with rates continuing into 2026.

CALABARZON and Central Visayas:

• These regions have seen increases in the minimum wage with simplified wage structures for clearer compliance.

Government Workers:

• For 2024 and 2025, the Department of Budget and Management (DBM) has earmarked PHP 70 billion for a two-tranche salary increase for government workers. That increase is being reflected in paychecks beginning January 2025 and continuing through 2026.

Upcoming Wage Determinations for 2026

Davao Region (Region XI) and Bicol Region (Region V) are scheduled to commence their minimum wage determination processes in January and February 2026, respectively. Employers in these regions should prepare for potential adjustments later in the year.

Proposed Nationwide Legislated Wage Increase

There are ongoing discussions in Congress regarding a nationwide legislated wage increase:

• House Bill No. 11376: Proposes a PHP 200 per day increase for all private sector minimum wage earners.
• Senate Bill No. 2534: Suggests a PHP 100 per day increase.

A bicameral conference committee will need to reconcile both proposals. If passed and signed into law, this could result in significant wage adjustments across all regions in late 2026 or 2027. However, as of January 2026, these bills remain under deliberation.

Key Compliance Considerations for 2026

Wage Distortion Corrections

With mandated increases affecting 4.5 million minimum wage earners, companies may face wage distortion—where the gap between salary levels is eliminated or significantly reduced. The National Wages and Productivity Commission (NWPC) advises employers to correct these distortions to maintain employee morale and equity. Guidance can be found in NWPC Advisory No. 01, Series of 2023.

Simplified Regional Wage Structures

Five regions (Cagayan Valley, Central Luzon, CALABARZON, MIMAROPA, and Central Visayas) have streamlined their wage structures in recent updates, making compliance clearer and reducing administrative complexity for employers.

Mandatory Statutory Benefits

Employers must ensure compliance with mandatory contributions and benefits:

• SSS contributions
• PhilHealth contributions
• Pag-IBIG (Home Development Mutual Fund) contributions
• 13th Month Pay and other legally mandated benefits

Navigating the Philippines Minimum Wage with Omni

Understanding and managing the diverse Philippines' minimum wage rates requires careful attention to regional and industry-specific variations. That’s why it’s important to pick the right HR tool and strategy to make the whole process less overwhelming. 

Omni’s suite of modules simplifies the task of managing the dynamic Philippines minimum wage. Through secure and centralized employee records, HR teams can quickly access accurate employment contracts and necessary documents for calculating minimum wage adjustments.

Omni provides a comprehensive payroll solution tailored to the Philippines specific requirements. With features like support for the Philippine peso, automated tax calculations, and managed SSS, PhilHealth, and PAG-IBIG contributions, Omni enables HR teams to streamline their payroll processing and ensure compliance with changing minimum wage requirements across the region.

Book a demo with our team, or try out Omni for free to learn how our automation can help you remain compliant and reduce your administrative workload for all of your People management needs.