What is the new minimum wage in the National Capital Region? Here is the complete guide to the changes in rates as per Wage Order No. NCR-24.
Key Points
- The Philippine minimum wage for 2024 varies across the regions.
- However, the new daily minimum wage for Metro Manila in 2024 ranges from Php 573 to Php 610 across its sectors.
- Moreover, the new monthly minimum rate for domestic helpers is Php Php 6,000.
What is Minimum Wage?
The minimum wage is the least amount allowable by law that employers should compensate their employees. Additionally, the employer cannot set minimum wages any less using any collective agreement or individual contract.
Additionally, minimum wages are in place to ensure fair compensation for the employees’ basic necessities with the salary that they earn. That is why in the Philippines, the minimum wage varies from region to region.
These wages are set by the local productivity boards and are further classified by work sectors. Ultimately, the minimum wage corresponds with the region’s cost of living and adjusts to inflation rates.
Who sets the minimum wage?
The minimum wage rates are updated 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. Moreover, it was further revised and amended in 1989 by Republic Act No. 6727.
Furthermore, the NWPC and the RTWPBs (wage boards) have 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.
Wage Sectors in the Philippines
The Philippine employment landscape is further divided into many sectors to classify wage rates. Below are the common classifications:
Agricultural Sector
- Plantation – This form of employment takes place in agricultural environments where crops like sugarcane, rice, corn, and other plantation crops are grown. Workers in plantation agriculture engage in tasks such as planting, harvesting, and crop maintenance.
- Non-Plantation – Non-plantation agriculture covers jobs related to farming that do not involve the aforementioned plantation crops. This includes working on smaller farms, livestock rearing, poultry farming, and other agricultural activities that fall outside the scope of plantation agriculture.
Non-Agricultural Sector
The non-agricultural sector encompasses various industries and sectors beyond the agricultural field. This includes the following:
- Manufacturing
- Construction
- Retail
- Services
- Hospitality
- Finance
- Other sectors
What differentiates the two sectors?
There are several key differences between these two sectors, including:
- Wage rates: Due to the seasonal and often unpredictable nature of agricultural work, workers in this sector have different wage rates. In the Philippines, regional minimum wages also differ for plantation and non-plantation workers.
- Working hours: The maximum allowable working hours vary for agricultural versus non-agricultural workers. Non-agricultural workers typically follow standard working hours as mandated by law, while agricultural workers may have more flexible and extended hours to meet seasonal demands.
- Employment contracts: The terms and conditions of employment contracts can vary greatly between agricultural and non-agricultural workers. For example, employers hire agricultural workers on a seasonal or temporary basis, whereas non-agricultural workers usually have more stable and long-term contracts.
- Benefits and protections: Agricultural workers receive specific legal benefits and protections, including provisions for housing, transportation, and healthcare, to address the unique challenges associated with agricultural work.
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Labor and Employment Wage Expectations in the NCR
The Regional Tripartite Wages and Productivity Board (RTWPB) has set minimum wage rates for the different industries in Metro Manila.
Whether you’re a business owner looking to stay competitive in a challenging market or a worker seeking to ensure that you’re being fairly compensated, this guide will explain the minimum wage policies in Metro Manila.
Minimum wage rate in Metro Manila in 2024
The Wage Board approved another batch of wage hikes last June 26 that went into effect on July 16, 2023. This adds another Php 40.00 to the previous rate and is still effective this 2024.
As a result, below is the current minimum wage for private employees in the National Capital Region under the new Wage Order No. NCR-24.
| Sector or Industry | Previous Minimum Wage Rate | Wage Increase | New Minimum Wage Rate |
|---|---|---|---|
| Non-Agriculture Sector | Php 570.00 | Php 40.00 | Php 610.00 |
| Agriculture Sector | Php 533.00 | Php 40.00 | Php 573.00 |
| Service or retail establishments with 15 or fewer employees | Php 533.00 | Php 40.00 | Php 573.00 |
| Manufacturing establishments regularly employing less than 10 workers | Php 533.00 | Php 40.00 | Php 573.00 |
After the increase, the minimum wage for the non-agriculture sector in Metro Manila is now Php 570.00 per day. Furthermore, workers in other sectors will now earn at least Php 533.00 per day.
Daily minimum wage rates for different cities in Metro Manila (NCR)
| City or Municipality | Non-Agriculture Sector | Agriculture, Service or Retail, Manufacturing |
|---|---|---|
| Caloocan City | Php 610.00 | Php 573.00 |
| Las Piñas City | Php 610.00 | Php 573.00 |
| Makati City | Php 610.00 | Php 573.00 |
| Malabon City | Php 610.00 | Php 573.00 |
| Mandaluyong City | Php 610.00 | Php 573.00 |
| Manila City | Php 610.00 | Php 573.00 |
| Marikina City | Php 610.00 | Php 573.00 |
| Muntinlupa City | Php 610.00 | Php 573.00 |
| Parañaque City | Php 610.00 | Php 573.00 |
| Pasay City | Php 610.00 | Php 573.00 |
| Pasig City | Php 610.00 | Php 573.00 |
| Quezon City | Php 610.00 | Php 573.00 |
| San Juan City | Php 610.00 | Php 573.00 |
| Taguig City | Php 610.00 | Php 573.00 |
| Valenzuela City | Php 610.00 | Php 573.00 |
| Navotas City | Php 610.00 | Php 573.00 |
| Pateros City | Php 610.00 | Php 573.00 |
Increased monthly minimum wage rate for local domestic workers and helpers
| Previous Monthly Wage Rate | Wage Increase | Current Monthly Wage Rate |
|---|---|---|
| Php 5,000.00 | Php 1,000.00 | Php 6,000.00 |
Aside from the increase in the daily wage rate of workers, the new wage order also set a new rate for domestic workers and helpers in the NCR. After the additional monthly minimum wage increase of Php 1,000, the new rate for domestic workers is now Php 6,000.
Latest Minimum Wage in Metro Manila (2024)
As per the Department of Labor and Employment (DOLE), the latest minimum wages in Metro Manila remained the same for 2024 as it was in 2023.
As a result, the minimum wage ranges from Php 573.00 to Php 610.00 per day in 2024, as it was in 2023 following the guidelines of the Wage Rationalization Act.
Compliance with the Wage Rationalization Act in 2024
The Wage Rationalization Act ensures a fair and impartial system for setting remuneration. Moreover, it determines clauses for wage increases all over the Philippines.
Wage Rates for Other Regions in the Philippines
- CAR
- Region I
- Region II
- Region III
- Region IV-A
- Region IV-B
- Region V
- Region VI
- Region VII
- Region VIII
- Region IX
- Region X
- Region XI
- Region XII
- Region XIII
- BARMM
Cordillera Administrative Region (CAR)
Effective in 2024, the MWR is Php 400.00 for all sectors in CAR.
Region I – Ilocos Region
Currently, after the second tranche of the minimum wage increase, the non-agriculture sector with 30 or more employees gets a rate of Php 430.00 per day.
Furthermore, those with 10-29 employees get paid Php 402.00, those with less than ten employees, and those in the non-plantation agriculture sector get paid Php 402.00, while those in plantation get Php 402.00 per day.
Region II – Cagayan Valley
Effective 2024, the MWR for the non-agriculture sector and retail and service establishments employing no more than ten employees is Php 435.00 per day, while those in the agriculture sector have their MWR set at Php 415.00 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 agricultural workers get Php 404.00 to Php 420.00. Finally, Php 425.00 to Php 439.00 for retail and services.
Region IV – A – CALABARZON (Cavite, Laguna, Batangas, Rizal, Quezon)
The MWR in Region IV-A for non-agriculture is Php 520.00. For agriculture, on the other hand, the rate is Php 479.00.
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 – Western Visayas
Across all sectors, the minimum wage will range from Php 440.00 to Php 480.00.
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 from Php 458.00 to Php 468.00.
Region VIII – Eastern Visayas Region
The current MWR in Region VIII is set at Php 375.00 to Php 405.00 for non-agriculture, agriculture, and retail and services.
Related: Updated minimum wages for the regions in Visayas
IX – Zamboanga Peninsula
For the Zamboanga Peninsula, the minimum wage rate is Php 381.00 across all sectors.
Region X – Northern Mindanao
The current MWR set for Northern Mindanao ranges from Php 393.00 to Php 405.00 for all sectors.
Region XI – Davao Region
The MWR for the 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 has an MWR set at Php 390.00 for the non-agriculture, agriculture, and services and retail establishment sectors.
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 minimum wages for the rest of the regions:
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Other relevant terms in determining minimum wage
Payroll cycle
The payroll cycle indicates how frequently employees receive their wages. In the Philippines, paying employees monthly is a common practice. However, monthly payments are not mandatory; some employers choose a bi-monthly or semi-monthly cycle instead.
The choice of payroll cycle depends on various factors such as company policy, industry norms, and the nature of the business. Selecting an appropriate payroll cycle can enhance employee engagement and satisfaction.
Pay date
The pay date is the specific day employees receive their salaries. Moreover, the employer’s payroll schedule and their chosen payroll cycle frequency determines this date. Clear communication of the pay date to employees is essential to ensure transparency and prevent confusion about when payments will be received.
Working hours
In the Philippines, working hours are regulated to safeguard employees’ rights and well-being. The standard workweek is 40 hours, with additional compensation required for any work beyond these hours. Employers must comply with these regulations to prevent employee burnout and ensure fair pay for overtime work, as stipulated by Philippine labor laws.
Night shift differential
Employees working night shifts, defined as hours between 10 PM and 6 AM, are entitled to a night shift differential. This additional compensation is usually set at 110% of the employee’s regular wage rate.
The night shift differential acknowledges the challenges and health impacts associated with working non-standard hours, ensuring fair compensation for overnight work.
Overtime compensation
As mentioned in the discussion of working hours, employees who work beyond the standard hours or on rest days and holidays are entitled to overtime compensation. Overtime pay rates generally range from 125% to 200% of the employee’s regular wage, with higher rates for work done on rest days and holidays.
Employers must accurately calculate and provide overtime pay to remain compliant with labor regulations and ensure fair treatment of their employees.
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Frequently Asked Questions
Who sets the minimum wage in the National Capital Region?
The Regional Tripartite Wages and Productivity Board (RTWPB) determines the minimum wage rates in NCR cities.
Furthermore, the board may also implement salary adjustments to the rates periodically. The current daily minimum wage rates in the NCR follow Wage Order No. NCR-24 and are effective as of July 16, 2023.
The minimum wage rates for domestic workers in Metro Manila and the rest of the NCR are covered by Wage Order No. NCR-DW-03 and are effective as of July 13, 2022.
It is important to note that the minimum wage rates in other regions of the Philippines may differ from those in the NCR. The minimum wage rates are adjusted periodically and may vary depending on the industry and the number of employees.
What is the range of minimum wage in Metro Manila?
Under the new wage order, the minimum wage rate for the different sectors in the NCR ranges from Php 570 to Php 610. However, the actual amount depends on the business’s number of employees and the industry.
For example, manufacturing firms regularly employing less than ten workers have a minimum wage rate of Php 573, while retail or service firms with a maximum of 15 workers have a minimum wage rate of Php 610.
Increase in National Wages in the NCR and the Rest of the Philippines
The minimum wage is usually raised to address issues related to income inequality and poverty.
Metro Manila is an expensive area where the cost of living is generally higher than in other regions in the Philippines. Given this, raising the minimum wage may be necessary to ensure that workers are able to meet their basic needs and have a decent standard of living.
Additionally, raising the minimum wage can also stimulate economic growth by increasing consumer spending.
When workers take home more income to spend, it can lead to increased demand for goods and services. As a result, it can create more jobs and generate more economic activity.
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