The first stage of the minimum wage increase measures in Metro Manila officially took effect on Saturday, with the minimum daily wage in the private sector raised by 60 pesos. The Department of Labor and Employment stated that this move aims to enhance workers' purchasing power and cope with inflation and rising cost of living.
According to Metro Manila Wage Order No. 27, the minimum daily wage for private sector employees in non-agricultural sectors has been raised from 695 pesos to 755 pesos.
In the agricultural sector, the service industry, retail establishments with no more than 15 employees, and manufacturing enterprises with fewer than 10 regular employees, the minimum daily wage has been increased from 658 pesos to 718 pesos.
Labor Secretary Francis Tolentino issued a statement saying that this wage adjustment is being implemented under President Marcos Jr.'s directive to improve workers' quality of life, with the aim of boosting people's purchasing power and helping to cope with pressures such as inflation and rising electricity costs.
He said this is the largest minimum wage hike in Metro Manila's history and is expected to benefit over 1.1 million workers receiving minimum wages.
Tolentino reminded employers that they must implement the new wage standards in accordance with the law, and violators will face legal penalties.
He also called on labor and management to properly address the issue of "wage compression" through collective bargaining agreements, that is, to adjust pay structures for employees earning above minimum wage to maintain reasonable salary differentials.
In addition, Tolentino previously stated that the government will provide financial assistance to micro, small, and medium-sized enterprises affected by the wage hike; eligible companies may also apply for exemption from implementing the wage increase within a 75-day period.
According to the plan, the second stage of the increase—an additional 25 pesos—will take effect on January 20, 2027.
At that time, the minimum daily wage in Metro Manila's non-agricultural sector will further increase to 780 pesos; the minimum daily wage in agriculture, services, retail, and manufacturing with fewer than 10 employees will rise to 743 pesos.
In the agricultural sector, the service industry, retail establishments with no more than 15 employees, and manufacturing enterprises with fewer than 10 regular employees, the minimum daily wage has been increased from 658 pesos to 718 pesos.
Labor Secretary Francis Tolentino issued a statement saying that this wage adjustment is being implemented under President Marcos Jr.'s directive to improve workers' quality of life, with the aim of boosting people's purchasing power and helping to cope with pressures such as inflation and rising electricity costs.
He said this is the largest minimum wage hike in Metro Manila's history and is expected to benefit over 1.1 million workers receiving minimum wages.
Tolentino reminded employers that they must implement the new wage standards in accordance with the law, and violators will face legal penalties.
He also called on labor and management to properly address the issue of "wage compression" through collective bargaining agreements, that is, to adjust pay structures for employees earning above minimum wage to maintain reasonable salary differentials.
In addition, Tolentino previously stated that the government will provide financial assistance to micro, small, and medium-sized enterprises affected by the wage hike; eligible companies may also apply for exemption from implementing the wage increase within a 75-day period.
According to the plan, the second stage of the increase—an additional 25 pesos—will take effect on January 20, 2027.
At that time, the minimum daily wage in Metro Manila's non-agricultural sector will further increase to 780 pesos; the minimum daily wage in agriculture, services, retail, and manufacturing with fewer than 10 employees will rise to 743 pesos.