After a series of public consultations held the previous month all over the region, the Regional Tripartite Wages and Productivity Board (RTWPB) Region 02 approved minimum wage hikes for workers in private establishments and domestic workers or kasambahays during its meeting on May 17, 2022 at Hotel Roma, Tuguegarao City
The increases will be implemented in tranches to ease the burden of employers who are still recovering from the pandemic. The first tranche comes with a PHP 30 increase for all minimum wage earners in private establishments upon the effectivity of Wage Order No. RTWPB 02-21 on June 8, 2022. Wage Order No. 02-DW-04 instituting the increase for domestic workers to PHP 5,000 per month will be effective on the same date. The complete details of the Wage Orders may be perused at https. //bit. ly/R2WageIncrease
By January 1, 2023, minimum wage workers in the non-agriculture sector are set to earn PHP 420 per day, increasing from PHP 370 per day for establishments employing more than ten, and from PHP 345 per day for establishments employing not more than ten. Meanwhile, minimum wage workers in the agriculture sector are set to earn PHP 400 per day by January 1, 2023, increasing from PHP 345 per day
This move emanates from the Board’s deliberation, taking into consideration the inputs of employers and employees during the public consultations and public hearing, as well as the economic condition of the region and its workers
Department of Labor and Employment Regional Director (RD) Joel M. Gonzales chairs the Board. National Economic and Development Authority RD Dionisio C. Ledres, Jr. and Department of Trade and Industry RD Romleah Juliet P. Ocampo sit as vice-chairs. Mr. Jesus B. Villamor and Mr. Johnny M. Alvaro, representing employees, and Ms. Arcelli L. Dulin, representing employers, complete the Board. #
More than 50% of Filipinos are daily-rate employees, which means their. Their earnings depend on the number of days that they worked. By law, they are qualified for overtime pay, but not all employers do this
As hourly paid employees, the most common set-up is for a worker to complete 40 hours per week. And because the minimum hourly wage in the Philippines 2020 is small, many of these employees are struggling financially
A lot of Filipinos are in the service sector. The ones who are paid more are those that work in skilled kinds of jobs. If we do not include OFW, the largest industry is the BPO industry, which accounts for 60% of the GDP of the country
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Daily Minimum Wage in the Philippines 2023
Now, let us take a look at the minimum wage salary in the Philippines. In this section, we will explain what the law says about minimum wage in the Philippines per month .
Let’s turn to the history of the minimum wage in the Philippines. As far as the law is concerned, there are two types of employment in the Philippines. The first one is agriculture, and the second one is non-agriculture. Agriculture is divided into two parts. The first one is called a plantation. The second one is called non-plantation
Plantation agriculture is any kind of business that has something to do with raising crops. The most common kind of crop grown in the country is rice, but this is not the only thing that the country produces. The Philippines is also a supplier of bananas, mangoes, coconuts, and many more
For non-plantation, this is any kind of agri-business that involves animals. The Philippines is a major producer of cattle, chicken, and pork. Any other business that does not fall in these two categories is called non-agriculture
Here are some examples
- Banking, insurance, and finance;
- BPO industry;
- Manufacturing;
- Pharmaceuticals;
- Construction and engineering;
- Government employees
Filipino Daily Minimum Wage 2023 Table
REGIONMINIMUM WAGE RATENon-Agriculture (PHP)
MINIMUM WAGE RATE (agriculture)Platation (PHP) Non-platation (PHP)ARMM – Mindanao Region 341. 00 –325. 00 300. 00 – 316. 00300. 00 – 316. 00CAR – CordilleraAdministrative Region
350. 00 – 380. 00350. 00 – 380. 00350. 00 – 380. 00 CARAGA – Caraga Region 320. 00 – 350. 00320. 00 – 350. 00320. 00 – 350. 00 I – Ilocos 340. 00 – 370. 00 295. 00 – 325. 00 282. 00 – 312. 00 II – Cagayan Valley 370. 00 – 400. 00 345. 00 – 375. 00 345. 00 – 375. 00 III – Central Luzon 420. 00 – 450. 00390. 00 – 420. 00374. 00 – 404. 00 IV-A – Calabarzon 400. 00 – 435. 00372. 00 – 401. 00356. 00 – 401. 00IV-B – SouthwesternTagalog Region
320. 00 – 355. 00320. 00 – 355. 00320. 00 – 355. 00IX – ZamboangaPeninsula
316. 00 – 351. 00303. 00 – 323. 00303. 00 – 323. 00NCR – NationalCapital Region
537. 00 – 570. 00533. 00533. 00 V – Bicol Region 310. 00 – 345. 00310. 00 – 345. 00310. 00 – 345. 00 VI – Western Visayas 395. 00 – 450. 00420. 00420. 00 VII – Central Visayas 404. 00 – 435. 00394. 00 – 425. 00394. 00 – 425. 00 VIII – Eastern Visayas 325. 00 – 350. 00–295. 00 – 320. 00 X – Northern Mindanao 365. 00 – 390. 00353. 00 – 378. 00353. 00 – 378. 00 XI – Davao Regiono 370. 00 – 427. 00365. 00 – 422. 00365. 00 – 422. 00 XII – Soccsksargen 336. 00 – 352. 00315. 00 – 331. 00315. 00 – 331. 00
FAQ
Why is minimum wage Important Philippines?
The purpose of minimum wages is to protect workers against unduly low pay
Who sets the minimum wage in the Philippines?
Each of the 16 regions in the Philippines has its own Regional Tripartite Wages and Productivity Board which sets minimum wage rates for their respective region
What are the negative effects of minimum wage?
Minimum wages reduce employment among low-wage, low-skill workers
How much is NCR minimum wage in 2023?
The minimum wage for non-agriculture jobs is Php 500 to Php 537 while the minimum rate for agriculture workers may it be plantation or non-plantation workers is Php 500
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Minimum wage law in the Philippines
The minimum wage rates are decided by a national wage board at a regional level. This is called the Regional Tripartite Wages and Productivity Boards. The board has a Regional Director from the Department of Labor and Employment (DOLE).
The regional directors of the National Economic and Development Authority are also part of this board. There are also representatives from the Department of Trade and Industry. Also, there are several representatives from organizations of employers and organizations of workers
All these people meet and then a resolution is made. This resolution is further recommended by the Secretary of DOLE. Once reviewed, the President of the Philippines is going to approve these recommendations and sign it into law. The National Wages and Productivity Commission (NWPC) is responsible for this
The Tripartite Regional Wage Board may set different minimum wage levels for the different sectors within the region if there are prevailing conditions that make such differentiation proper and necessary provided it is in consonance with the Labor Code of the Philippines
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How much is minimum wage in Metro Manila 2023?
If you are from Manila, how much will you earn? What will be your minimum wage in Metro Manila per month?
Under Wage Order No. NCR-23 dated May 13, 2022, the daily minimum wage in Manila ncreased by Php 33, bringing the new basic pay rate for 2023 – 603 Php for non-agriculture sector workers and Php 566 for agriculture workers
The minimum Manila rate salary for 2022 was Php 570 a day for the non-agriculture sector and Php 533 per day for the agriculture sector. There is a difference of Php 33 from the Manila rate for 2023 compared to the previous year
Is this enough? Not really
At ₱603 per day, you will earn ₱13,266 if you work for 22 days a month. Now, a decent apartment costs ₱8,000 in Manila. As you can see, this already eats up big part of your income
Add to that the cost of education, gasoline, food, and then you have nothing left. If you work in the BPO industry, you will find companies that pay as much as ₱25,000 even if you are just new. The kind of salary you earn, of course, depends on your skills and the clients that you serve
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Provincial rate in the Philippines 2023
For the minimum wage Philippines in the province, it is a different discussion altogether
The minimum provincial rate in the Philippines varies because there are different economic conditions depending on the location in the country. Moreover, the minimum wage depends on the cost of living of the workers based on the Wage Rationalization Act or RA 6727. For example, according to the 2023 Philippines DOLE wages table, the salary range in the minimum wage for the province of Pangasinan ranges from Php 372 to Php 400
There are many regions in the Philippines, and you will have to consult the table from the Department of Labor and Employment to see the actual ranges
Here are the minimum wage rates of some provinces in the Philippines
✔ Minimum wage in Bukidnon is Php 378 – Php 405
✔ Minimum wage in Surigao del Sur is Php 350
✔ Minimum wage in Davao Oriental is Php 438 – Php 443
✔ Minimum wage in Quezon City is Php 500 – Php 537
✔ Minimum wage in Pampanga is Php 344 – Php 460
✔ Minimum wage in Cavite is Php 350 – Php 470
✔ Minimum wage in Masbate is Php 365
✔ Minimum wage in Negros Occidental is Php 410 – Php 450
✔ Minimum wage in Cebu is Php 382 – Php 435
✔ Minimum wage in Samar is Php 382 – Php 435
✔ Minimum wage in Zamboanga del Norte is Php 338 – Php 351
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Example of Salary Computation
The salary computation is not at all complicated. It is a straightforward multiplication of your wage per day against the number of days you worked
For example, if your salary is ₱500 per day, and you worked 26 days, then you earned ₱13,000 for that month. What makes it complicated is if you are paying taxes. If you are a Filipino minimum wage earner, you do not have to pay any tax, but you still have to pay your SSS, PhilHealth, PAG-IBIG, and many more
There is no specific amount that Filipinos pay for these mandatory government contributions. It all depends on your range of income
Here is an example of what you will earn in a month if your income is ₱500 per day
So, how to compute monthly salary in the Philippines?
Basic salary in the Philippines 2023 = ₱13,000 for the month
DEDUCTIONS
SSS = ₱585
PhilHealth = 195
PAG-IBIG = ₱100
The total amount of deductible from your salary is ₱880. As such, your final income at the end of the month is ₱12,120
Take note that it is not a standard practice for Filipinos to earn once per month. Instead, they earn twice a month
✔ How to compute the daily rate from monthly salary in the Philippines? To do this, divide the monthly rate by 12 and multiply by the total number of days you work each year
✔ How to compute overtime pay in the Philippines? To do this, divide the daily rate by 8 and multiply by 125%. This will be the cost of an hour of overtime
If you are interested in salary increase 2023 for government employees in the Philippines, read about it on our sute. There you can also see updated labor rates in the Philippines
If you are interested in PNP salary in the Philippines 2023, read about it here. However, this does not include army salary in the Philippines, as it is calculated separately
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Top 5 highest paying jobs in the Philippines 2023
1. Doctor / Surgeon – Salary range. from 76,300 Php – 264,000 Php
2. Judge – Salary range. from 64,100 Php – 222,000 Php
3. Lawyer – Salary range. from 51,900 Php – 179,000 Php
4. Bank Manager – Salary range. from 48,800 Php – 169,000 Php
5. Chief Executive Officer – Salary range. from 45,800 Php – 158,000 Php
Salaries can differ from one company to another, depending on your skills, knowledge, and experience. The Philippine basic salary is Php 570 per day or Php17,100 per month or Php 222,300 per year including the 13-month salary, but if you want to earn more, you should pay attention to these professions. The lowest paying jobs in the Philippines are forestry workers, aqua-farm cultivators and farmworkers, and also tailors, dressmakers and hatters.
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Daily Minimum Wage in the Philippines 2021 – 2022
The increase in the minimum wage from 2021 to 2022 is Php 33. However, adjustments vary in each region due to several factors which include prevailing wage rates, poverty threshold, and socioeconomic indicators such as employment or unemployment figures, inflation, and gross regional domestic product
As shown in the current daily minimum wages for the National Capital Region (NCR), the non-agriculture sector has a wage rate of Php 537 for 2021 and adding Php 33 equals Php 570 for 2022. The non-agricultural sectors (Plantation and Non-plantation) was Php 500 in 2021 and adding Php 33 amounts to Php 533 for 2022, which took effect last June 4, 2022. For the CAR, the three sectors are from Php 350 to Php 380, which is an increase of Php 30 in each sector, effective June 14, 2022
The following table shows minimum wage of provinces in the Philippines per day in 2021. The minimum wage rate of Manila in 2021 is indicated under NCR
Filipino Daily Minimum Wage 2021 Table
REGIONMINIMUM WAGE RATENon-Agriculture (PHP) MINIMUM WAGE RATE (agriculture)Platation (PHP) Non-platation (PHP)ARMM – Mindanao Region 300. 00 – 325. 00 290. 00 – 300. 00290. 00 – 300. 00 CAR – Cordillera
Administrative Region 350. 00 – 350. 00350. 00 – 350. 00350. 00 – 350. 00 CARAGA – Caraga Region 320. 00 – 320. 00320. 00 – 320. 00320. 00 – 320. 00 I – Ilocos 282. 00 – 340. 00 295. 00 282. 00 II – Cagayan Valley 370. 00 345. 00 345. 00 III – Central Luzon 369. 00 – 420. 00354. 00 – 390. 00342. 00 – 374. 00 IV-A – Calabarzon 317. 00 – 400. 00303. 00 – 372. 00303. 00 – 372. 00 IV-B – Southwestern
Tagalog Region 316. 00 303. 00303. 00 IX – Zamboanga
Peninsula 316. 00 – 351. 00303. 00 – 323. 00303. 00 – 323. 00 NCR – National
Capital Region 500. 00 – 537. 00500. 00500. 00 V – Bicol Region 310. 00 310. 00 310. 00 VI – Western Visayas 310. 00 – 395. 00315. 00315. 00 VII – Central Visayas 356. 00 – 404. 00351. 00 – 394. 00351. 00 – 394. 00 VIII – Eastern Visayas 325. 00 295. 00295. 00 X – Northern Mindanao 343. 00 – 365. 00331. 00 – 353. 00331. 00 – 353. 00 XI – Davao Regiono 396. 00 391. 00 391. 00 XII – Soccsksargen 336. 00 315. 00 315. 00
Minimum wages in ASEAN countries are gradually rising to keep pace with rising living costs. However, due to the pandemic COVID-19, many ASEAN members did not raise or increased their minimum wages significantly
Summary
Minimum wage increase in the Philippines does not happen all the time. It all depends also as to what the President will approve. Regardless of any increase, a minimum wage is not enough. By the time the government decides to increase the minimum wage rate, money has already inflated
So, even if PHP750 minimum wage Philippines is being discussed in the news, it may not really help a lot of workers. The best thing you can do is to look for a job that pays you more. You can do this by improving your skills or going abroad
Authors
Alyssa Divina
Author pages
Alyssa Divina pens blog articles about a wide range of topics, such as money matters and government transactions in the Philippines. Prior to joining Digido Finance Corp. , she served as a journalist for Charlton Media Group, a business news magazine, for two years. She holds a degree in Journalism from the University of the Philippines Diliman
Mark Anthony
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Mark Anthony is, the Finance and Accounting Manager. of Digido Finance Corp. , monitoring and controlling the flow of cash that comes in and out of the company to meet the company’s business needs, preparing the financial reports and analysis of income and expenses, and monitoring tax compliance
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How much is the minimum salary in Philippines 2023?
“According to think tank IBON Foundation, the P570 minimum wage in Metro Manila , the highest regional minimum wage in the country, is only 49. 1 percent of the P1,161 family living wage in the region as of January 2023,” the explanatory note stated.What is minimum wage in Calabarzon 2023?
In Region IV-A (Calabarzon), the 2nd trance of minimum wage increase took effect on December 30, 2022. In this region, minimum wage earners in non-agriculture establishments received P11-P48 increase, making the minimum wage rates at P350-P470 .What is hi minimum wage 2023?
What is the 2023 minimum wage in Hawaii? Currently, the 2023 minimum wage is $12. 00 an hour for employers in Hawaii. According to the US Labor Law Center , these are the previous and current minimum wage rates for the state of Hawaii.How many dollars is minimum wage in Philippines?
What is minimum wage in Philippines? Minimum Wages in Philippines increased to 570 PHP/Day ( 11970 USD/Month ) in 2022.