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 new daily minimum wage in Metro Manila ranges from Php 573 to Php 610 across its sectors.
- Moreover, the new monthly minimum rate for domestic helpers is Php Php 6,000.
As the bustling economic hub of the Philippines, the National Capital Region (NCR) or Metro Manila is home to a diverse workforce. It houses industries ranging from manufacturing and retail to hospitality and services. That said, it is important to understand the nuances of minimum wages in Metro Manila, from legal requirements and exemptions to strategies for negotiating fair compensation.
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, minimum wage earners in the non-agriculture sector in Metro Manila are now earning 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 | Php 610.00 | Php 573.00 |
| Las Piñas | Php 610.00 | Php 573.00 |
| Makati | Php 610.00 | Php 573.00 |
| Malabon | Php 610.00 | Php 573.00 |
| Mandaluyong | Php 610.00 | Php 573.00 |
| Manila | Php 610.00 | Php 573.00 |
| Marikina | Php 610.00 | Php 573.00 |
| Muntinlupa | Php 610.00 | Php 573.00 |
| Parañaque | Php 610.00 | Php 573.00 |
| Pasay | Php 610.00 | Php 573.00 |
| Pasig | Php 610.00 | Php 573.00 |
| Quezon | Php 610.00 | Php 573.00 |
| San Juan | Php 610.00 | Php 573.00 |
| Taguig | Php 610.00 | Php 573.00 |
| Valenzuela | Php 610.00 | Php 573.00 |
| Navotas | Php 610.00 | Php 573.00 |
| Pateros | 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.
NCR
The National Wages and Productivity Commission (NWPC) and the Regional Tripartite Wages and Productivity Boards-National Capital Region (RTWPB-NCR) has issued a Php 40.00 wage hike order last June 26, 2023.
This raised the minimum wage in the NCR from Php 570.00 to Php 610.00 for non-agriculture workers. Moreover, it raised the daily rate from Php 533.00 to Php 573.00 for workers in the agricultural sector.
Northern Mindanao
On December 21, 2023, the Northern Mindanao Wage Board was the last governing body to issue a wage hike in its regional jurisdiction.
From this came the increase from Php 423.00 to Php 438.00 for the non-agriculture sector. Moreover, it revised the daily rate from Php 411.00 to Php 426.00 for the agriculture sector.
Davao Region
A new wage hike order from the Davao Region Wage Board is yet to be implemented.
However, consultations with the Philippine Statistics Authority, the Department of Trade and Industry, the National Economic and Development Authority, and the Department of Agriculture have been held.
Public hearings to finalize the orders are scheduled to progress within the first three months of the year 2024.
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.
Related:
Calculate daily rates accurately with eezi
Pay your employees the right daily wages each time with eezi‘s timekeeping and payroll system.