Can you support your family on what you earn today?
A family of five in Metro Manila needs P1,193 a day to live. A family of the same size but in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) needs even more at P2,026 a day. Unless both families have parents holding jobs with high salaries, they will struggle to live decently because the current minimum wage in the Philippines isn’t enough in Manila and in the BARMM areas.
In any country, the minimum wage serves as a fundamental benchmark for ensuring fair compensation for workers, addressing basic living expenses, and promoting economic stability. In the Philippines, where labor is a significant contributor to the economy, the minimum salary holds great importance for millions of workers across various industries.
So how much minimum salary can workers in the Philippines expect?
What is the Minimum Salary Per Day in the Philippines?
The Regional Tripartite Wages and Productivity Boards (RTWPBs) reviews and adjusts the minimum wage rates with a mandate to ensure that they remain adequate in meeting the basic needs of workers and their families. These adjustments consider factors, such as inflation, cost of living, productivity, and economic conditions.
The minimum wage rates vary across different regions in the Philippines. For instance, in the National Capital Region (NCR), which includes Metro Manila, the minimum wage is P610, which is typically higher compared to other regions due to the relatively higher cost of living, and in Central Luzon, the minimum salary is P500. These figures still vary, depending on the sector as well as the location; Manila rates will not be the same as rates in the province:
Metro Manila
- Agricultural workers P573
- Domestic workers P6,500 (per month)
Central Luzon (Bataan, Bulacan, Nueva Ecija, Pampanga, Tarlac, Zambales)
Non-agriculture
- Employees working in businesses with 10 or more workers P500
- With less than 10 workers P493
Agriculture
- Plantation P470
- Non-plantation P454
Service and retail
- Employees in businesses with 10 or more workers P489
- With less than 10 workers P475
Central Visayas
(Carcar, Cebu City, Danao, Lapulapu, Mandaue, Naga, Talisay, Compostela, Consolacion, Cordova, Liloan, Minglanilla, San Fernando)
- Non-agriculture: P468
- Workers in agriculture, and non-agriculture establishments with less than 10 workers P458
(Bais, Bayawan, Bogo, Canlaon, Dumaguete, Guihulngan, Tagbilaran, Tanjay, Toledo)
- Non-agriculture P430
- Workers in agriculture and non-agriculture establishments with less than 10 workers P425
Other municipalities
- Non-agriculture P420
- Workers in agriculture and non-agriculture establishments with less than 10 workers P415
Mimaropa
- Employees in business with 10 or more workers P395
- With less than 10 workers P369
- Domestic workers P5,500
Bangsamoro Autonomous Region in Muslim Mindanao
Cotabato City
- Non-agriculture P361
- Agriculture P336
(Maguindanao del Norte, Maguindanao del Sur, Lanao Del Sur, Sulu, Tawi-tawi and the cities of Marawi, Basilan, and Lamitan)
- Non-agriculture P336
- Agriculture P326
Special Geographic Area
- Non-agriculture P341
- Agriculture P316
Although a new Senate bill was recently approved to increase the minimum salary in the Philippines by P100, the effectivity of the law has yet to be realized.
The minimum wage directly impacts the livelihoods of millions of Filipino workers, especially those in low-wage sectors, such as retail, hospitality, and domestic work. For many, the minimum salary serves as the primary source of income to support themselves and their families.
However, despite efforts to set minimum wage rates at levels that provide for basic needs, many workers still struggle to make ends meet. The gap between the minimum wage and the actual cost of living, particularly in urban areas, remains a pressing issue. Factors like rising inflation, high unemployment rates, and inadequate social welfare programs further exacerbate the challenges low-wage workers face. Small wonder then that many choose to work abroad to earn better.
The Minimum Wage System in the Philippines
The Philippines has a complex minimum wage system that varies across different regions and sectors. The rationale behind this variability lies in the differences in living costs, economic development, and industry standards across the archipelago.
The country employs a two-tiered minimum wage system: one for workers in the non-agricultural sector and another for agricultural workers. The government, through the National Wages and Productivity Commission and RTWPBs, establishes and regulates these minimum wages.
However, challenges persist in ensuring that minimum wage earners are adequately compensated and protected. Enforcement mechanisms, labor rights violations, and informal employment continue to undermine the effectiveness of minimum wage policies.
Minimum Wages Must Meet Economic Realities
The minimum wage in the Philippines is a crucial aspect of labor regulation aimed at ensuring fair compensation and decent work for all. Efforts have been made to establish minimum wage rates that attempt to reflect economic realities. But more needs to be done to address the persistent challenges low-wage workers face. By promoting inclusive growth, strengthening labor institutions, and enhancing social protection measures, the Philippines can move closer to achieving equitable and sustainable development for all its citizens.
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