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All About Minimum Wage in the Philippines

Last updated: November 23, 2022
Written by: Alyssa Divina | Reviewed by: Rafael Hular

Key takeaways:

  • 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.

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 2022?

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 2022. 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 in the Philippines.

The Wage Situation

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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Daily Minimum Wage in the Philippines 2022

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 2022 Table

REGION MINIMUM WAGE RATE  

Non-Agriculture (PHP) 

 MINIMUM WAGE RATE (agriculture)
Platation (PHP)  Non-platation (PHP)
ARMM – Mindanao Region 341.00 –325.00  300.00 – 316.00 300.00 – 316.00
CAR – Cordillera

Administrative Region

350.00 –  380.00 380.00 –  380.00 380.00 –  380.00
CARAGA – Caraga Region 320.00 –  350.00 320.00 –  350.00 320.00 – 350.00
I – Ilocos 340.00 –  370.00  295.00 – 325.00  312.00  – 312.00
II – Cagayan Valley 370.00 – 400.00  345.00 – 375.00  345.00 – 375.00
III – Central Luzon 420.00 – 450.00 390.00 – 420.00 374.00 – 404.00
IV-A – Calabarzon 400.00 – 435.00 372.00 – 401.00 356.00 – 401.00
IV-B – Southwestern

Tagalog Region

320.00 – 355.00 320.00 – 355.00 320.00 – 355.00
IX – Zamboanga

Peninsula

316.00 – 351.00 303.00 – 323.00 303.00 – 323.00
NCR – National

Capital Region

537.00 – 570.00 533.00 533.00
V – Bicol Region 310.00 – 345.00 310.00 – 345.00 310.00 – 345.00
VI – Western Visayas 395.00 – 450.00 420.00 420.00
VII – Central Visayas 404.00 – 435.00 394.00 – 425.00 394.00 – 425.00
VIII – Eastern Visayas 325.00 – 350.00 295.00 – 320.00
X – Northern Mindanao 365.00 – 390.00 353.00 – 378.00 353.00 – 378.00
XI – Davao Regiono 370.00 – 427.00 365.00 – 422.00 365.00 – 422.00
XII – Soccsksargen 336.00 – 352.00 315.00 – 331.00 315.00 – 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 2022?
    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.

How much is minimum wage in Metro Manila 2022?

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 for 2022 shall be increased by Php 33, bringing the new basic pay rate to Php 570 for non-agriculture sector workers and Php 533 for agriculture workers. The new Manila rate for 2022 took effect last June 4, 2022. It means the minimum wage in Manila for 2023 will be 603 Php for non-agriculture sector workers and Php 566 for agriculture workers.

The minimum Manila rate salary for 2021 was Php 537 a day for the non-agriculture sector and Php 500 per day for the agriculture sector. There is a difference of Php 33 from the Manila rate for 2022 compared to the previous year

Is this enough? Not really.

At ₱570 per day, you will earn ₱12,540 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 2022

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 2022 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 2022 = ₱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 2022 for government employees in the Philippines, read about it in the article. There you can also see updated labor rates in the Philippines.

If you are interested in PNP salary in the Philippines 2022, 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 2022-2023

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.

Daily Minimum Wage in the Philippines 2021

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

REGION MINIMUM WAGE RATE  
Non-Agriculture (PHP) 
MINIMUM WAGE RATE  (agriculture)
Platation (PHP)  Non-platation (PHP)
ARMM – Mindanao Region 300.00 – 325.00  290.00 – 300.00 290.00 – 300.00
CAR – Cordillera
Administrative Region
350.00 –  350.00 350.00 –  350.00 350.00 –  350.00
CARAGA – Caraga Region 320.00 –   320.00 320.00 –  320.00 320.00 – 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 – 420.00 354.00 – 390.00 342.00 – 374.00
IV-A – Calabarzon 317.00 – 400.00 303.00 – 372.00 303.00 – 372.00
IV-B – Southwestern
Tagalog Region
316.00  303.00 303.00 
IX – Zamboanga
Peninsula
316.00 – 351.00 303.00 – 323.00 303.00 – 323.00
NCR – National
Capital Region
500.00 – 537.00 500.00 500.00
V – Bicol Region 310.00  310.00  310.00
VI – Western Visayas 310.00 – 395.00 315.00 315.00
VII – Central Visayas 356.00 – 404.00 351.00 – 394.00 351.00 – 394.00
VIII – Eastern Visayas 325.00  295.00 295.00
X – Northern Mindanao 343.00 – 365.00 331.00 – 353.00 331.00 – 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.
Rafael Hular
Author pages:
Rafael “Raffy” L. Hular 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.  Raffy loves reading Japanese comics called manga and watching Japanese animated cartoon series. He dreams of establishing his own Accounting and Auditing Firm and teaching in a University.

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