The first tranche of the PHP85 minimum wage hike in the National Capital Region (NCR) took effect on Saturday, raising the daily minimum pay by PHP60, the Department of Labor and Employment (DOLE) said.
Under Wage Order NCR-27, the initial adjustment brings the minimum salary of private sector workers in the non-agriculture sector from PHP695 to PHP755 per day.
On the other hand, the rate in the agriculture sector, service, and retail shops with 15 or fewer employees, and manufacturing firms with fewer than 10 regular workers rose from PHP658 to PHP718.
In a statement, DOLE Secretary Francis Tolentino said the wage hike is intended to boost the purchasing power of Filipinos and help them keep up with economic conditions, such as inflation and rising electricity costs, under the directive of President Ferdinand R. Marcos Jr. to improve the quality of life for workers.
The latest wage hike is the largest increase in Metro Manila to date, benefiting more than 1.1 million minimum-wage workers in the region.
Tolentino reminded employers to follow the wage adjustment as non-compliance will result in penalties set by law.
He also urged resolving wage distortion, or the adjustment of salaries above the minimum wage, through collective bargaining agreements between labor and management.
Earlier, Tolentino said they will provide financial assistance to micro, small, and medium enterprises (MSMEs) affected by the wage hike.
The MSMEs may likewise file for exemption within the given 75-day period if qualified.
Meanwhile, the additional PHP25 increase will take effect on Jan. 20, 2027.
Upon full implementation, the daily minimum wage in Metro Manila’s non-agriculture sector will be PHP780, while the pay for workers in the agriculture, services, retail, and manufacturing (employing fewer than 10 workers) sector will increase to PHP743. (PNA)