Private sector employers in the Cordillera Administrative Region (CAR) are legally required to implement new minimum wage rates effective as of December 30, 2025.
The Department of Labor and Employment (DOLE) has confirmed that under the newly implemented Wage Order No. CAR-24, the daily minimum wage for private sector workers has increased by P35, bringing the new total to P505 for an eight-hour workday.
Breakdown of the New Wage Rates
This adjustment is mandatory for all private sector employers across the Cordillera region, covering all industries and employment statuses.
- Private Sector Employees: The minimum daily pay is now P505 (increased from the previous P470).
- Domestic Workers (Kasambahay): Under a separate directive (Wage Order No. CAR-DW-07), the monthly minimum wage for domestic workers has increased by P600. The new mandatory monthly salary is P6,600 (up from P6,000).
For details on nationwide minimum wage, refer to our article on minimum wage in the Philippines in 2026.
Coverage and Exclusions
During an announcement on January 5, DOLE-Kalinga Provincial Director Avelina Manganip clarified the scope of the new orders:
- Who is Covered: The P505 rate applies to all minimum wage earners in the private sector, regardless of their position, designation, or how their wages are paid (e.g., daily or monthly rates converted).
- Overtime Rules: The P505 rate covers a standard eight-hour shift. Any work performed beyond eight hours must be compensated with overtime pay.
- Government Employees: These wage orders do not apply to public sector employees, whose compensation is governed by the Civil Service Commission and the Salary Standardization Law.
Penalties for Non-Compliance
DOLE has issued a strict reminder that adherence to the new wage order is not optional. Employers found violating the mandated rates may face legal sanctions, including fines and imprisonment, as stipulated under Republic Act No. 6727 (Wage Rationalization Act).
Ensure Your Payroll is Compliant
With wage orders shifting across multiple regions in the Philippines for the 2026 fiscal year, businesses must update their payroll systems immediately to avoid labor disputes and penalties.
Contact our Philippines payroll team for a compliance review to ensure your salary structures align with the latest regional mandates.
