Metro Manila minimum wage rises to ₱755: What employers need to update

Metro Manila’s minimum daily wage for non-agricultural workers increased to ₱755 on 26 September 2026, following the implementation of Wage Order No. NCR-28. The ₱60 increase is expected to benefit approximately 1.1 million minimum wage earners, according to the Department of Labor and Employment (DOLE).

For businesses employing staff in the National Capital Region (NCR), the immediate priority is to update payroll from the effective date and review related employment costs.

New minimum wage rates in Metro Manila

DOLE has instructed employers to reflect the increase in their payroll and compensation systems and said it will monitor compliance. The categories and rates are set out in its 26 September announcement.

For more information on regional wage rates and employer requirements, read our guide to minimum wage in the Philippines.

NCR-28 applies while NCR-27 remains under litigation

The current increase operates under NCR-28. The National Wages and Productivity Commission (NWPC) separately lists the earlier Wage Order NCR-27 as awaiting final court decisions. Its current wage table identifies NCR-28 as effective from 26 September, with daily rates of ₱718 to ₱755.

This distinction matters for employers reviewing earlier announcements: the pending proceedings concerning NCR-27 should not be treated as a reason to postpone implementing the rates now established under NCR-28.

What employers should update in payroll

For payroll periods spanning 26 September, employers should ensure that covered earnings from that date reflect the applicable new minimum.

Payroll teams should review:

• Effective-date settings: Apply the new minimum from 26 September 2026.
• Attendance and payroll records: Check paid days and any payroll already processed for the affected period, then address any shortfall.
• Wage-based payments: Recalculate overtime, night-shift differential and applicable holiday or rest-day pay where the underlying wage has increased.

The calculation and coverage of these wage-based payments are governed by the Labor Code’s employment conditions.

How much could employment costs increase?

For budgeting purposes, a worker receiving the full ₱60 adjustment across 26 ordinary paid workdays would generate ₱1,560 in additional basic wages.

For 50 such workers, the illustrative increase would be ₱78,000, before related benefits and other applicable employment costs. Actual costs depend on paid days, work schedules and each employee’s compensation.

For businesses with substantial numbers of minimum wage employees, the practical impact is a recurring change to operating costs that should be reflected in staffing budgets.

Review salary differences above the minimum wage

Businesses should also review pay differences between employees at the minimum and those immediately above it. A higher wage floor can narrow distinctions previously based on responsibility, skills or length of service.

The increase does not automatically mean every employee earning above the new minimum receives an identical ₱60 adjustment. Employers need to assess whether their salary structure creates a wage distortion and address it through the applicable process.

The NWPC’s wage distortion advisory explains the criteria and procedures for correcting these situations.

Payroll support for businesses in the Philippines

Reviewing payroll settings, wage-based benefits and salary differentials together can help employers implement the increase accurately and update their staffing budgets.

Emerhub supports businesses with payroll services in the Philippines, including payroll processing, statutory contributions and premium-pay calculations. Contact our Philippines team for support updating your payroll to reflect the new Metro Manila minimum wage.