Minimum wage in the Philippines: how to find the rate that applies
Minimum wage is set by regional wage boards, so the rate depends on the region, the sector and sometimes the employer's size, and employers should check the latest wage order for their region.
Where to look
- Identify the region where each worksite is located. Employees in different regions can have different minimum rates.
- Look up the latest wage order for that region on the NWPC website.
- Check the sector and the establishment size, since some orders set different rates or exemptions.
- Compare each affected employee's daily rate with the minimum.
When a new wage order takes effect
- Update the daily rate from the effective date.
- Recompute the rates built on it: overtime, holiday pay, night differential and leave conversion.
- Pay any back pay for days worked since the effective date. See Add payroll adjustments.
The wage order is public, so cite it in your payroll file for audits.
Questions people ask
Who sets the minimum wage?
Regional Tripartite Wages and Productivity Boards issue wage orders for their region. The National Wages and Productivity Commission publishes them.
Is there one national minimum wage?
No. The rate differs by region and, in some wage orders, by sector, such as agriculture and non-agriculture, or by the size of the establishment.
Does the minimum wage include allowances?
Only what the wage order counts as part of the minimum wage. Cost-of-living allowances are often integrated into the basic wage by later orders.
How should payroll handle a new wage order?
Update the basic pay of affected employees from the effective date, and pay any difference for days already worked since that date.
Sources
- Republic Act No. 6727, Wage Rationalization Act
- National Wages and Productivity Commission, regional wage orders