All About Minimum Wage in the Philippines
Published: February 8, 2021. Last updated: June 22, 2022
- Minimum wage increase in the Philippines does not happen all the time.
- By the time the government decides to increase the minimum wage rate, money has already inflated.
- The best thing you can do is to look for a job that pays you more.
- If you are short on cash, we recommend that you get a loan.
- Digido is a legitimate online company that gives fast loans to Filipinos.
- Within only 4 minutes, you can receive up to PHP 25,000 on your bank account.
Employees in the Philippines have rights. There are laws that state how much an employer should pay his or her employee per day. But how much is the monthly minimum wage in the Philippines 2021?
The minimum wage law in the Philippines does not indicate a single number. Instead, the salaries that the government mandates vary from one industry to another, and it also has something to do with your location.
Today, we are going to discuss everything you need to know about minimum wages in the Philippines 2021. By the end of this tutorial, you should know your rights and to not accept any job offer if it is lower than the minimum wage 2021 in the Philippines.
The Wage Situation in the Philippines
Currently, there are a lot of bad practices in the country. There are many people living under the minimum wage. A lot of people only receive less than ₱200 per day, which is less than $5 in American money. At the same time, the unemployment rate is growing due to the pandemic that even special programs from the Social Security System (SSS) cannot help.
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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Minimum Wage Law in the Philippines 2021
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 2021 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;
- Construction and engineering;
- Government employees.
Now, one good question arises: who decides on the minimum wage rate 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.
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Daily minimum wage in the Philippines 2021
|NCR||500.00 – 537.00|
|CAR||340.00 – 350.00|
|REGION I||282.00 – 340.00|
|REGION II||345.00 – 370.00|
|REGION III||304.00 – 420.00|
|REGION IV-A||303.00 – 400.00|
|REGION IV-B||294.00 – 320.00|
|REGION VI||310.00 – 395.00|
|REGION VII||351.00 – 404.00|
|REGION VIII||295.00 – 325.00|
|REGION IX||303.00 – 316.00|
|REGION X||331.00 – 365.00|
|REGION XI||381.00 – 396.00|
|REGION XII||315.00 – 336.00|
|BARMM||290.00 – 325.00|
How much is minimum wage in Metro Manila 2021?
If you are from Manila, how much will you earn? What will be your minimum wage in Metro Manila per month? The last salary increase or review for Manila happened in 2018. When we say Manila, we are referring to the National Capital Region (NCR).
Minimum Manila rate salary 2021 in the Philippines in NCR for the non-agriculture sector is ₱500 to ₱537. Here we are referring to minimum Manila rate per day. If you belong to the agriculture industry, the wage is a flat ₱500 for both plantation and non-plantation. It is also daily minimum wage Philippines 2021. So when asked if annual salary increases are mandatory in the Philippines, the answer is, alas, no.
Is this enough? Not really.
At ₱500 per day, you will earn ₱12,000 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 67% 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 2021
For the minimum wage Philippines 2021 in the province, it is a different discussion altogether. 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.
According to the 2019 Philippines DOLE wages table, the salary range in the Philippines for non-agriculture is between ₱282 and ₱350. For the agriculture sector, the range is between ₱282 and ₱353.
As for the situation in Manila, it is difficult to live on these national wages. Even if you get ₱350 per day, and you work for 26 days, which includes Saturdays, you will only earn ₱9,000.In the provinces, apartments range between ₱4,000 to ₱8,000. As you can see, you will pay somewhere between 50% to 87% of your salary for an apartment if you decide to live on your own.
This is not enough. The salary of ₱9,100 is only good for a fresh graduate who still lives with his or her parents.
✔ Minimum daily wage in Cagayan de Oro is PHP338
✔ Minimum daily wage in Bacolod is PHP500
✔ Minimum daily wage in Davao is PHP340
✔ Minimum daily wage in Quezon City 2021 is PHP400
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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 2021?
Basic salary in the Philippines 2021 = ₱13,000 for the month
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 2021? 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 2020 for government employees in the Philippines, read about it in the article. There you can also see updated labor rates in the Philippines 2021.
If you are interested in PNP salary in the Philippines 2020, read about it here. However, this does not include army salary in the Philippines, as it is calculated separately.
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Can you actually live on minimum monthly income in the Philippines?
Yes and no. A minimum wage allows you to live below the poverty line, and only if you already have a house. If you do not have a house and you have to rent an apartment, you cannot sustain it financially. For this you need to earn above the minimum wage.
It does not matter if you live in Manila or the province. As we saw earlier in provincial minimum wage Philippines 2019, your salary of ₱9,100 is not going to allow you to live a decent life. Even if you and your spouse are married, you cannot live a decent life with this salary. The average annual salary in the Philippines is 655,200 pesos per year, with a minimum annual salary in the Philippines only 190,000 pesos per year. You can see the difference for yourself.
This is why many Filipinos prefer to work abroad as daily paid employees or look for extra remote work online. Here they get paid $10 per day, but abroad, they can earn at least $10 per hour for the same skill and effort.
Top 5 highest paying jobs in the Philippines 2021
- Corporate Strategy and business planning. Basic monthly salary in the Philippines is PHP125 000.
- IT Sector (software developer, web developer, and systems administrator etc. Minimum monthly salary in the Philippines is PHP90 000.
- Actuarial Science (banking jobs, jobs in insurance companies and investment firms. Minimum monthly wage in the Philippines 2021 is PHP82 000.
- Customer Service and phone support. Monthly basic salary in the Philippines is PHP80 000.
- Banking and Finance Services, Financial analyst, certified public accountants, loan officers and bank tellers. Minimum monthly pay in the Philippines is PHP74 000.
These are not all of the top salaries in the Philippines, but the main areas to which you can pay attention.
The lowest paying jobs in the Philippines are forestry workers, aqua-farm cultivators and farmworkers, and also tailors, dressmakers and hatters. The lowest salary in the Philippines is PHP6,290 monthly.
Emergency Loan in Digido
If you are short on cash, we recommend that you get a loan. To make sure you have fast approval and low interest, choose Digido.
Digido is an online loan facility that allows you to get small loans easily. It is not like a bank that requires a lot of things from the applicants.
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You can apply for a loan from Digido for as long as you are employed, and you are between 21 and 70 years of age. You only need to scan your valid ID, provide personal data, proof of income, and proof of address. Send it online and you will be informed if you get approved.
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You can contact Digido at the hotline number (02) 8876-84-84, working hours 8AM – 5PM every day.
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.
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