Starting July 1, 2025, private sector workers across the Philippines will experience adjustments in their daily minimum wages.
These changes, initiated by the Regional Tripartite Wages and Productivity Boards (RTWPBs), aim to address the rising cost of living and ensure fair compensation for workers.
This article provides a comprehensive overview of the updated minimum wage rates in the National Capital Region (NCR) and various other regions.
NCR Update: Key Changes for Private Sector Workers
In the National Capital Region, the RTWPB has approved a ₱35 increase in the daily minimum wage for non-agricultural workers.
This adjustment raises the daily wage from ₱610 to ₱645. For workers in retail and service establishments employing fewer than 10 workers, as well as those in agriculture, the daily wage increases from ₱573 to ₱608.
This wage order, known as Wage Order No. NCR-25, took effect on July 17, 2024, and continues to be in force as of July 2025 .
Regional Wage Adjustments: A Nationwide Perspective
The RTWPBs in various regions have also implemented wage increases to reflect local economic conditions. Below is a summary of the new daily minimum wage rates across selected regions:
| Region | New Daily Minimum Wage (₱) | Increase Amount (₱) | Sectors Affected |
|---|---|---|---|
| National Capital Region (NCR) | 645 (Non-agri), 608 (Agri) | 35 | Private Sector |
| Region I (Ilocos Region) | 435–470 | 30–40 | Non-agri and Agri |
| Region IV-A (Calabarzon) | 520–570 | 25–35 | Private Sector |
| Region VI (Western Visayas) | 450–500 | 30–40 | Non-agri and Agri |
| Region XI (Davao Region) | 460–510 | 25–30 | Various Sectors |
| Region XII (Soccsksargen) | 420–480 | 20–30 | Manufacturing, Service |
| Region X (Northern Mindanao) | 461 | 15 | Non-agri (Second tranche effective July 2025) |
| Region XIII (Caraga) | 435 | 20 | Non-agri and Agri |
| Region VIII (Eastern Visayas) | 405–435 | 15 | Non-agri and Agri |
Note: The above rates are subject to specific conditions and classifications within each region.
Implications for Employers and Workers
The wage adjustments have significant implications:
- For Workers: The increased wages aim to enhance the purchasing power of employees, helping them cope with inflation and the rising costs of basic necessities.
- For Employers: Businesses, especially small and medium enterprises, may experience increased labor costs. Employers are encouraged to review their payroll systems and ensure compliance with the new wage orders to avoid penalties.
The Department of Labor and Employment (DOLE) has emphasized the importance of adherence to these wage adjustments and will conduct inspections to ensure compliance .
Economic Context and Legislative Developments
The wage increases occur against a backdrop of ongoing legislative efforts to standardize wage adjustments nationwide. In June 2025, the House of Representatives approved a bill proposing a ₱200 across-the-board daily wage increase for private sector workers.
This proposal is currently under review and, if enacted, would mark the first legislated nationwide wage hike since 1989
President Ferdinand Marcos Jr. has expressed the need to balance the welfare of workers with the sustainability of businesses, indicating that any legislated wage hike will be carefully considered in consultation with regional wage boards .
The July 2025 minimum wage adjustments signify a concerted effort to improve the living standards of private sector workers across the Philippines.
While these changes present challenges for employers, they are essential steps toward achieving equitable economic growth and social justice.
FAQs
When did the new minimum wage rates take effect?
The new minimum wage rates in various regions, including the NCR, took effect on July 1, 2025.
Are all regions implementing the same wage increase?
No, wage increases vary by region, reflecting local economic conditions and cost of living.
What should employers do to comply with the new wage orders?
Employers should update their payroll systems, review employment contracts, and ensure that all employees receive wages in accordance with the new regional wage orders.