What is Minimum Wage?
Minimum wage is the least amount allowable by law for employers to compensate their employees. Additionally, the employer cannot set the minimum wage any less by any collective agreement or individual contract.
Additionally, minimum wages are in place to make sure that every worker can afford their basic necessities with the salary that they earn. That is why in the Philippines, the minimum wage varies from region to region, and further differentiated by work industry. Lastly, the minimum wage corresponds with the region’s cost of living.
Who/what controls the minimum wage?
The minimum wage rates gets updates as often as necessary. This is to address changes in the cost of basic necessities and upon approval of petitions for wage hikes. But who regulates these changes? Such is the duty of the National Wages and Productivity Commission (NWPC) and the Regional Tripartite Wages and Productivity Board (RTWPB).
These agencies are also under the Presidential Decree No. 442 or Labor Code of the Philippines. Particular articles concerning wages were then revised and amended in 1989 by Republic Act No. 6727.
Furthermore the NWPC and the RTWPBs (wage boards) has the authority to set the new minimum wage rate per region. Additionally, the RTWPB sets the regional tripartite wage after reviewing the current cost of living in the region. The goal of the RTWPB and NWPC is to set a fair minimum wage rate that allows minimum wage earners to afford their basic necessities and make the necessary wage adjustments when needed.
Regional Minimum Wages
The regional minimum wage is set differently in the Agriculture sector and the Non-agriculture sector. The Agriculture Sector is further divided into Plantation and Non-plantation. The minimum wage set for each region may also vary depending on which of these three industries the employee belongs to.
National Capital Region (NCR)
The minimum wage in the National Capital Region is usually the basis when someone asks how much the minimum wage in the Philippines is. This year (2023), after the wage hike took effect, the MWR is Php 570.00 for the non-agriculture sector and Php 533.00 for the agriculture sector.
Cordillera Administrative Region (CAR)
Effective on the first day of 2023, the MWR is Php 400.00 for all sectors in CAR.
Region I – Ilocos Region
Currently, after second tranche of wage increase, the non-agriculture sector with 30 or more employees gets a rate of Php 400.00 per day.
Furthermore, those with 10-29 employees get paid Php 370.00, those with less than ten employees and those under non-plantation agriculture sector get paid Php 342.00, while those in plantation get Php 372.00 per day.
Region II – Cagayan Valley
Effective January 1, 2023, the MWR for the Non-agriculture sector and Retail and service establishments employing no more than ten employees in Php 425.00 per day, while those in the agriculture sector have their MWR set at Php 400.00 per day.
Region III – Central Luzon
Except for the province of Aurora, the MWR for Region III ranges from Php 443.00 to Php 450.00 for non-agriculture. In addition, the agriculture rate is Php 404.00 to Php 420.00. Finally, Php 425.00 to Php 439.00 for retail and services.
For the province of Aurora, the MWR for Non-agriculture is Php 409.00, Php 382.00 – 394.00 for Agriculture, and Php 344.00 for retail and services.
Region IV – A – CALABARZON (Cavite, Laguna, Batangas, Rizal, Quezon)
The MWR in Region IV-A for non-agriculture will range from Php 390.00 to Php 470.00, Php 350.00 to 429.00 for agriculture, and Php 350.00 for those in the service and retail.
See the updated minimum wages for Calabarzon.
Region IV – B – MIMAROPA (Mindoro, Marinduque, Romblon, Palawan)
Starting on the tenth of June 2022, the minimum wage rate in MIMAROPA will range from Php 329.00 to Php 355.00 across all sectors.
Region V – Bicol Region
Effective on the first day of December 2022, the MWR in the Bicol Region is Php 365.00 across all sectors.
Region VI – Across Western Visayas
Across all sectors, the minimum wage will range from Php 410.00 to Php 450.00.
Region VII – Central Visayas
After the wage order took effect on the 14th of June 2022, the MWR across all sectors in Region VII was set at Php 382.00 to Php 435.00.
Region VIII – Eastern Visayas Region
The current MWR in Region VIII is set at Php 345.00 – Php 375.00 for non-agriculture, agriculture, and retail and services.
IX – Zamboanga Peninsula
For the Zamboanga Peninsula, the minimum wage rate ranges from Php 338.00 to Php 351.00 across all sectors.
Region X – Northern Mindanao
The current MWR set for Northern Mindanao ranges from Php 378.00 to Php 405.00 for all sectors.
Region XI – Davao Region
The MWR for Davao Region ranges from Php 438.00 to Php 443.00 across all sectors. This is after the full implementation of all tranches of the wage increase.
Region XII – SOCCSKSARGEN (South Cotabato, Cotabato, Sultan Kudarat, Sarangani, General Santos CIty)
Currently, Region XII is sporting an MWR set at Php 368.00 for the non-agriculture sector and Php 347.00 for the agriculture sector and services and retail establishments.
Region XIII – CARAGA (CARAGA Administrative Region)
Across all sectors, the MWR for CARAGA is set at Php 350.00.
BARMM (Bangsamoro Autonomous Region in Muslim Mindanao)
At present, BARMM has a minimum wage rate ranging from Php 306.00 to Php 341.00 across all sectors.
See the rest of the minimum wages in Mindanao.
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