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Philippines·Trade & Economy

Philippines raises Metro Manila minimum wage by P85 in largest increase since 1989

Wednesday, 22 July 2026, 07:12 · 1 min read

Metro Manila (the Philippine capital region) workers began receiving a higher minimum daily wage on July 25, as Wage Order NCR-27 adds P60 immediately and a further P25 in January 2027, lifting the non-agriculture rate from P695 to an eventual P780 — the largest single increase the regional wage board has granted since its founding in 1989 and affecting roughly 1.1 million workers. The Bangko Sentral ng Pilipinas, which had anticipated only a 6% rise rather than the 12% that was approved, has since raised its inflation forecast to 6.4% for 2026, warning of potential "second-round effects" if other regional boards follow suit and businesses pass higher labour costs on to consumers. While labour groups argue even P780 falls well short of a living wage and employer associations warn of pressure on small firms, the Department of Labour has ruled out any delay, and distressed micro-enterprises may apply for exemption before a September 22 deadline.

Sources
Rappler[In This Economy] Economic impacts of the ‘historic’ P85 wage hike ↗︎
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