Wages remain a critical issue in the Philippines, especially in Metro Manila, where the cost of living is highest. In 2025, workers received another significant wage adjustment after the Regional Tripartite Wages and Productivity Board – NCR (RTWPB-NCR) approved a new wage order. This increase marks the largest single-day adjustment in the region’s history, aiming to support employees in coping with inflation and rising household expenses.
New Minimum Wage Rates in Metro Manila
On July 18, 2025, Wage Order No. NCR-26 officially took effect. Under this order, workers across different sectors in Metro Manila received a ₱50 daily wage increase. The new rates are as follows:
Non-Agricultural Workers
- Previous rate: ₱645/day
- New rate: ₱695/day
Agricultural Workers
- Previous rate: ₱608/day
- New rate: ₱658/day
Service and Retail Establishments (with 15 or fewer workers)
- Previous rate: ₱608/day
- New rate: ₱658/day
Manufacturing Establishments (with 10 or fewer workers)
- Previous rate: ₱608/day
- New rate: ₱658/day
This adjustment benefits around 1.2 million minimum wage earners in the National Capital Region.
Monthly Salary Equivalent
To give a clearer picture of the increase, the daily rates can be multiplied by 26 working days in a month.
- Non-agriculture workers: ₱695 × 26 = ₱18,070 per month
- Agriculture, service, and small manufacturing workers: ₱658 × 26 = ₱17,108 per month
This means most Metro Manila workers will now earn between ₱17,000 and ₱18,000 monthly, excluding overtime, holiday pay, and other company allowances.
Coverage and Eligibility
The 2025 wage increase covers most employees in the private sector. However, certain groups are exempted.
Covered Workers
- Employees in non-agriculture, agriculture, service/retail, and small manufacturing sectors
- Workers regardless of status, job title, or payment method (daily or monthly)
Exempted Workers
- Household helpers or kasambahays (covered separately under the Domestic Workers Act)
- Apprentices and learners whose wages are determined by training contracts
- Informal sector workers without formal employment contracts
Employer Responsibilities
Employers must comply with the new wage order starting July 18, 2025. Failure to pay the mandated minimum wage can lead to penalties under the Labor Code. The Department of Labor and Employment (DOLE) will continue to conduct inspections and handle complaints to ensure compliance.
Why the Wage Hike Was Approved
Several reasons influenced the decision to increase the NCR minimum wage in 2025:
- Inflation and the rising cost of food, housing, transportation, and utilities
- Historical upward trend in minimum wage: ₱537 in 2022, ₱570 in 2023, ₱645 in 2024, and now ₱695 in 2025
- Ongoing discussions in Congress for a possible ₱200 across-the-board nationwide wage increase under House Bill No. 11376
Impact of the Wage Adjustment
Positive Effects for Workers
- Better purchasing power to meet basic needs
- Improved financial stability for over one million employees
- Support in addressing poverty and inequality in Metro Manila
Challenges for Employers
- Increased labor costs, especially for small and medium-sized enterprises
- The need to adjust business budgets, which could affect prices and competitiveness
Economic Balance
The wage board considered both the needs of workers and the capacity of employers before approving the ₱50 adjustment, striking a compromise between employee welfare and business sustainability.
Worker Protection
DOLE plays a central role in enforcing the new wage rates. Workers are encouraged to report violations if employers fail to comply. Wage protection remains a cornerstone of labor rights in the Philippines.
Conclusion
The new Metro Manila minimum wage for 2025—₱695 per day for non-agricultural workers and ₱658 per day for agriculture, small service, and manufacturing workers—marks a significant step forward in protecting workers’ incomes. While the increase provides relief to employees, it also presents challenges to businesses that must adjust to higher operating costs. As discussions on further nationwide wage hikes continue, the 2025 adjustment highlights the government’s efforts to balance fair labor compensation with economic sustainability.
FAQs
What is the minimum wage in Metro Manila in 2025?
₱695/day for non-agriculture workers and ₱658/day for agriculture, service, and small manufacturing workers.
When did the new wage order take effect?
The increase became effective on July 18, 2025, under Wage Order No. NCR-26.
Who is not covered by the new wage increase?
Domestic helpers, apprentices, learners, and informal sector workers are not included.