Minimum Wage in Manila: New Rates and Key Insights (2026)

• Metro Manila’s minimum wage is now ₱695 per day for most workers, effective July 18, 2025—the highest rate ever in the region.
• Over 1.2 million employees will benefit from this ₱50 daily increase, helping them manage rising living costs.
• Workers in agriculture, retail (with 15 or fewer employees), and small manufacturing (with 10 or fewer employees) now receive ₱658 per day.
• Employers must update payroll to comply with the new rates, while some small businesses and BMBEs may qualify for exemptions

Since the pandemic, the average salary increase for Filipino workers has steadily risen over the past few years. A recent survey reports that companies expect to increase their median salary budget by 5.7% this year.

In this post, we’ll cover the latest wage rates in Manila and explore how these changes might affect you—whether you’re an employee or an employer.

The minimum wage is the lowest amount of money that employers are legally allowed to pay their workers each day. In the Philippines, this rate is set by region to match the local cost of living and economic conditions. The goal is to make sure all employees get fair pay for their work and can afford their basic needs.

• Promotes fair pay across your workforce
• Helps attract and retain quality employees
• Supports employee satisfaction and productivity
• Meets legal requirements and avoids penalties

The National Wages and Productivity Commission (NWPC) and the Regional Tripartite Wages and Productivity Boards (RTWPBs) set minimum wage rates based on:

• Cost of living and inflation
• Regional economic conditions
• Productivity and business capacity to pay
• Consultations with labor groups, employers, and government agencies

The Department of Labor and Employment (DOLE) has announced that the NCR Regional Tripartite Wages and Productivity Board (RTWPB) approved a ₱50 increase in the daily minimum wage through Wage Order No. 26. This ₱50 increase is the largest in NCR’s history and follows the previous ₱35 hike in 2024. It took effect on July 18, 2025.

Below is a summary of the updated minimum wage rates for Metro Manila employees:

Note: Certain small businesses and Barangay Micro Business Enterprises (BMBEs) may be exempt, subject to DOLE approval.

Yes. The wage boards consider inflation, cost of living, and other economic indicators when reviewing and adjusting minimum wage rates. The latest increase was partly in response to rising prices and the need to support workers’ purchasing power.

Wage orders are issued when:

• There are significant changes in economic conditions (e.g., inflation, GDP growth, unemployment).
• Labor groups or employers file petitions for wage adjustments.
• Regular annual reviews are conducted to ensure wages remain fair and relevant.

• Private sector workers in Metro Manila, including those in non-agriculture, agriculture, service, retail, and small manufacturing sectors
• Full-time and part-time employees are entitled to the minimum wage, with part-time workers receiving a proportionate amount

• Barangay Micro Business Enterprises (BMBEs) registered under the BMBE Act.
• Retail and service establishments with 10 or fewer employees may apply for exemption.
• Businesses affected by natural or human-induced calamities can also seek exemption, subject to approval by the wage board.

Keeping up with the latest minimum wage changes in Metro Manila is essential for any business to stay compliant, fair, and competitive. With wage rates updated regularly, it can be difficult to know if your company’s pay structure meets legal requirements and matches industry standards. 

This is where Sprout Benchmark, our advanced compensation analytics tool, can help. It provides real-time market data, allowing you to easily compare your salary offerings with those of similar businesses in your sector and region. Benchmark allows you to quickly identify if your compensation packages are up to date or if adjustments are needed to attract and retain top talent.

Book a consultation today and discover how easy it is to keep your pay rates competitive and compliant with Benchmark.

The minimum wage in Metro Manila is ₱695 per day for most workers, while employees in agriculture, small retail, and small manufacturing receive ₱658 per day. See the latest updates on minimum wage in NCR.