- 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.
All About Minimum Wage in the Philippines
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 it?
The minimum wage law 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. By the end of this tutorial, you should know your rights and not accept any job offer if it is lower than the minimum wage.
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.
More than 50% of Filipinos are salary workers. 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 wage in the Philippines 2020 is small, many of these employees are struggling financially.
A lot of Filipinos are in the services 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.
Minimum Wage Law in the Philippines 2020
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 wages in the country.
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 on these two categories is called on-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 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.
Minimum Wage in Manila 2020
If you are from Manila, how much will you earn? The last salary increase or review for Manila happened in 2018. When we say Manila, we are referring to the National Capital Region (NCR).
As of 2021, the minimum wage in NCR for the non-agriculture sector is ₱500 to ₱537. If you belong to the agriculture industry, the wage is a flat ₱500 for both plantation and non-plantation.
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 house 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.
Provincial Minimum Wage in the Philippines
For the provinces, 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 for non-agriculture is between ₱282 and ₱350. In the agriculture sector, the range is between ₱282 and ₱353.
As the situation in Manila, it is difficult to live on this wage. Even if you get ₱350 per day, and you work for 26 days, which includes Saturdays, you will only earn ₱9,000.
In the Philippines 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.
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 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 single 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:
Basic Pay = ₱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.
Can you actually live on minimum wage?
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.
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.
This is why many Filipinos prefer to work abroad. Here they get paid $10 per day, but abroad, they can earn at least $10 per hour for the same skill and effort.
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.
Here are the benefits of applying for a loan from Digido:
– Online – no need to queue up in physical locations; just submit your documents online.
– Fast – get approved in as short as 24 hours.
– Affordable – the interest rates are low, and they do not increase interest rates as banks do.
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, proof of income, and proof of address. Send it online and you will be informed if you get approved.
The money will be transferred to your bank account. By the time you have to pay, you will also pay your debt online. There is no need to make a bank deposit or go to any facility to pay for what you owe. And the best part? There is no collateral needed for this loan.
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 750 minimum wage Philippines is in the discussion, 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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