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This undated photo shows an individual counting Philippine peso bills.
The Philippine STAR / Walter Bollozos
MANILA, Philippines — The first tranche of the approved P85 daily minimum wage increase in Metro Manila took effect on Saturday, granting a P60 pay hike to around 1.1 million minimum wage earners in the National Capital Region (NCR).
Under Wage Order No. NCR-27, the daily minimum wage for workers in the non-agricultural sector increased from P695 to P755.
Workers in the agriculture sector, service and retail establishments employing 15 workers or fewer, and manufacturing firms with fewer than 10 employees will now receive P718 a day, up from P658.
The remaining P25 increase will take effect on Jan. 20, 2027, raising the daily minimum wage to P780 for non-agricultural workers and P743 for workers in agriculture and covered small establishments.
The Department of Labor and Employment (DOLE) said the wage adjustment is the largest minimum wage increase granted in Metro Manila to date, with an estimated 1.1 million workers expected to benefit.
The labor department also reminded employers to comply with the wage order.
“In line with the implementation, the labor chief (Francis Tolentino) continues to remind employers to follow the wage adjustment, as non-compliance will result in penalties set by law," the DOLE said in a press release.
"He (labor chief Tolentino) also urged resolving wage distortion, or the adjustment of salaries above the minimum wage, through collective bargaining agreements between labor and management,” it added.
The increase took effect despite calls from the Foundation for Economic Freedom (FEF), a private-sector public advocacy group and think tank, to suspend the wage order, saying the increase could fuel inflation and eventually drive up the cost of goods and services.
Malacañang, however, rejected calls to defer the implementation. Palace Press Officer Claire Castro said the Palace had not received any formal request from the private sector to suspend or revoke the wage order.
The P85 wage increase will be implemented in two tranches, with the second and final P25 adjustment set to take effect on Jan. 20, 2027.
