Minimum wage in the Philippines
A clear overview of the current minimum wage structure in the Philippines, region by region, and what it means for your obligations and your costs as a foreign employer hiring Filipino staff. Updated 28 September 2026 for Wage Order NCR-28.
The minimum wage system in the Philippines
Unlike countries with a single national minimum wage, the Philippines uses a decentralised, regional system. Wage floors are set by 17 separate Regional Tripartite Wages and Productivity Boards (RTWPBs) under the Department of Labor and Employment (DOLE).
This structure means the minimum wage reflects the cost of living and industrial capacity of each region. Rates can also vary by industry and by the size of the establishment. For example, a non-agriculture worker in the National Capital Region (NCR) can be on ₱755 a day, while provincial rates run from ₱401 in BARMM to ₱600 in parts of Central Luzon and CALABARZON. As the employer, you must apply the minimum wage of the region where the employee actually performs the work, which for remote roles means where they are based. To employ staff directly you first need a local entity, which is where our company registration in the Philippines service comes in.
Current regional minimum daily wage rates
The table below summarises the daily minimum wage in force in each region, with the monthly equivalent based on 26 working days. Where a range is shown, the lower figure applies to agriculture, smaller establishments, or lower-paid areas within the region. These figures are set by wage order and change periodically.
| Region | Daily minimum (₱) | Monthly equivalent (26 days) |
|---|---|---|
| Metro Manila (NCR) | ₱718 – ₱755 | ₱18,668 – 19,630 |
| Cordillera (CAR) | ₱505 | ₱13,130 |
| Ilocos (Region I) | ₱480 – ₱505 | ₱12,480 – 13,130 |
| Cagayan Valley (Region II) | ₱500 | ₱13,000 |
| Central Luzon (Region III) | ₱515 – ₱600 | ₱13,390 – 15,600 |
| CALABARZON (Region IV-A) | ₱508 – ₱600 | ₱13,208 – 15,600 |
| MIMAROPA (Region IV-B) | ₱455 | ₱11,830 |
| Bicol (Region V) | ₱455* | ₱11,830 |
| Western Visayas (Region VI) | ₱520 – ₱550 | ₱13,520 – 14,300 |
| Central Visayas (Region VII) | ₱500 – ₱540* | ₱13,000 – 14,040 |
| Eastern Visayas (Region VIII) | ₱440 – ₱470 | ₱11,440 – 12,220 |
| Zamboanga Peninsula (Region IX) | ₱451 – ₱464 | ₱11,726 – 12,064 |
| Northern Mindanao (Region X) | ₱485 – ₱500 | ₱12,610 – 13,000 |
| Davao (Region XI) | ₱525 – ₱540 | ₱13,650 – 14,040 |
| SOCCSKSARGEN (Region XII) | ₱443 – ₱460 | ₱11,518 – 11,960 |
| Caraga (Region XIII) | ₱475 | ₱12,350 |
| BARMM | ₱401 – ₱436* | ₱10,426 – 11,336 |
Monthly equivalents use 26 working days (five days a week plus one rest day), the common basis for wage calculation. Rates as of 28 September 2026. *Increases already set by wage order: Central Visayas rises to ₱542 to ₱582 on 14 October 2026, and Bicol to ₱480 and BARMM to ₱426 to ₱461 on 1 December 2026.
Minimum wage in Metro Manila (NCR)
Metro Manila, the National Capital Region, has the highest minimum wage in the country and sets the benchmark the rest of the Philippines is measured against. The current rates come from Wage Order NCR-28, which took effect on 26 September 2026 and raised both Metro Manila rates by ₱60 a day. It replaces the NCR-26 rates that had applied since 18 July 2025. The ₱60 daily increase is the largest single adjustment the NCR wage board has put into effect, ahead of the ₱50 raise under NCR-26 in 2025. It covers around 1.1 million minimum wage earners.
An earlier order, NCR-27, set the same ₱755 rate from 25 July 2026 and a second increase to ₱780 in January 2027. A Pasig City court halted it on 30 July, five days after it took effect, and it remains in litigation. NCR-28 sets the rates employers must pay now. We cover the change and the payroll steps in Metro Manila minimum wage rises to ₱755.
The rate depends on the sector and the size of the establishment:
| Sector in NCR | Daily (₱) | Monthly (26 days) |
|---|---|---|
| Non-agriculture (most workers, including BPOs) | ₱755 | ₱19,630 |
| Agriculture | ₱718 | ₱18,668 |
| Retail / service (15 or fewer workers) and manufacturing (under 10 workers) | ₱718 | ₱18,668 |
The non-agriculture rate of ₱755 covers the widest range of employees: commercial establishments, BPOs, food service, larger retail chains, and construction. The lower ₱718 rate reflects the reduced capacity to pay of smaller enterprises. A few categories sit outside these figures: domestic workers (kasambahay) are covered by their own wage rules, while apprentices, learners, and registered micro-businesses may pay a reduced rate or qualify for an exemption under the wage order.
Applying the NCR-28 rates in payroll
26 September 2026 is the cut-over date. For a pay period that runs across it, days worked up to 25 September are paid at the old rate and days from 26 September at the new one. A non-agriculture worker who works four days before the cut-over and six after earns ₱2,780 plus ₱4,530, or ₱7,310 for the period.
Every payment worked out from the daily rate rises with it. At ₱755, an hour of ordinary overtime at 125% comes to about ₱118. Work on a regular holiday pays ₱1,510, and work on a special non-working day pays ₱981.50. 13th-month pay is based on basic salary actually earned, so it goes up without any separate change.
Check pay just above the minimum too. A supervisor on ₱760 a day was ₱65 above entry-level staff before 26 September and is now ₱5 above them. Article 124 of the Labor Code treats a narrowed gap like this as a wage distortion that must be corrected, through negotiation with the union where there is one. DOLE has said it will monitor compliance with the new rates.
Salary expectations by experience and skill
To attract and keep skilled Filipino talent you need to benchmark against experience and demand, not just the legal minimum. These are typical gross monthly salary ranges for private-sector professionals in metro areas such as Metro Manila, Cebu, and Davao.
| Tier | Profile | Monthly gross (₱) | Annual (USD at ₱62.50) |
|---|---|---|---|
| Entry-level | 0–2 years (fresh graduates, rank-and-file, BPO agents) | 20,000 – 30,000 | $3,840 – $5,760 |
| Mid-level | 3–5 years (specialists, senior rank-and-file, team leads) | 35,000 – 60,000 | $6,720 – $11,520 |
| Senior specialist | 6+ years (individual contributors, consultants, key experts) | 60,000 – 120,000 | $11,520 – $23,040 |
| Managerial / executive | Department heads, operations and general managers | 90,000 – 150,000+ | $17,280 – $28,800+ |
Specialized roles in high-demand fields, such as a senior software developer, IT director, or financial controller, can sit well above the managerial benchmark, often from ₱120,000 to over ₱250,000 a month.
Mandatory contributions for employers
Beyond salary, you are legally obliged to contribute to your employees' social security alongside them, withhold income tax, and pay the statutory premiums and bonuses. The three contribution funds are:
| Program | Employer | Employee |
|---|---|---|
| SSS (Social Security) | 10% of the monthly salary credit (capped at ₱35,000) | 5% of the MSC |
| PhilHealth (health insurance) | 2.5% of basic salary, on a salary base of ₱10,000 to ₱100,000 (maximum ₱2,500) | 2.5% of basic salary (maximum ₱2,500) |
| Pag-IBIG (housing fund) | 2% of monthly salary, capped at ₱200 | 2% of monthly salary, capped at ₱200 |
SSS is the national insurance program, covering retirement, disability, sickness, and maternity, shared between employer and employee on the employee's monthly salary credit. PhilHealth is the national health insurance program, with contributions typically shared 50/50. Pag-IBIG is a national savings and housing-loan fund, with a minimal contribution split between the two sides.
Withholding income tax for employees
As the employer, you deduct income tax from the employee's salary and remit it to the Bureau of Internal Revenue (BIR). The system is progressive, from 0% (exempt) up to 35%.
| Annual taxable income (₱) | Tax |
|---|---|
| 0 to 250,000 | 0% (tax-exempt) |
| 250,001 to 400,000 | 15% of the excess over 250,000 |
| 400,001 to 800,000 | 22,500 + 20% of the excess over 400,000 |
| 800,001 to 2,000,000 | 102,500 + 25% of the excess over 800,000 |
| 2,000,001 to 8,000,000 | 402,500 + 30% of the excess over 2,000,000 |
| Over 8,000,000 | 2,202,500 + 35% of the excess over 8,000,000 |
Tax is calculated on net taxable income, that is, gross taxable salary minus the mandatory contributions. For example, an employee on ₱30,000 a month pays ₱2,450 a month in SSS, PhilHealth, and Pag-IBIG, leaving ₱330,600 of annual net taxable income. That puts ₱80,600 (₱330,600 minus 250,000) into the taxable band, taxed at 15%, which works out to about ₱1,007.50 a month or ₱12,090 a year.
How much does it cost to hire in the Philippines?
When budgeting, look past the minimum wage to market rates, since skilled workers, especially in IT and specialized remote roles, command salaries well above the statutory floor. Take a mid-level software developer on ₱80,000 a month. The all-in cost looks like this:
| Cost element | Basis | Annual (₱) | Monthly (₱) |
|---|---|---|---|
| Basic salary | ₱80,000 × 12 | 960,000 | 80,000 |
| 13th-month pay | ₱80,000 × 1 | 80,000 | 6,667 |
| Employer contributions | SSS ₱3,530; PhilHealth ₱2,000; Pag-IBIG ₱200 | 68,760 | 5,730 |
| Total cost | Sum of the above | 1,108,760 | 92,397 |
So an ₱80,000 salary is closer to ₱92,397 a month once the 13th month and the employer contributions are counted. Always identify where the employee actually works to apply the right regional minimum, and budget for these on-costs rather than the headline salary alone.
Minimum wage FAQs
What foreign employers most often ask about pay and obligations in the Philippines.
Are remote employees covered by the same labor laws as on-site staff?
Yes. Philippine labor law applies to the employment relationship regardless of where the work is done, so a remote employee is entitled to the same protections: the minimum wage of the region where they are based, the statutory contributions, the 13th month, holiday and premium pay, and the same security of tenure as an on-site employee.
What is the difference in pay between regular holidays and special non-working days?
A regular holiday is paid even if the employee does not work, at 100% of the daily wage, and at 200% if they do work. A special non-working day follows a no-work, no-pay rule unless company policy says otherwise, and pays 130% if worked. Regular holidays are therefore the more expensive of the two for an employer operating through them.
What is exempt from income tax for minimum wage earners?
Statutory minimum wage earners are exempt from income tax on their basic minimum wage, the holiday pay, overtime pay, night-shift differential, and hazard pay tied to that work. The first ₱90,000 of 13th-month pay and other benefits is also tax-exempt for everyone, not just minimum wage earners.
Can I pay a different rate to a remote employee in a low-wage region?
Yes. The minimum wage is set by where the employee actually works, so a remote employee based in a lower-wage region can be paid the floor for that region rather than the NCR rate. In practice, skilled remote roles pay well above any regional minimum, but the legal floor is the one where the employee lives and performs the work.
How often do wage orders change?
Wage orders are issued by each regional board independently and there is no fixed cycle, but most regions revise every one to two years. The current NCR order, NCR-28, took effect on 26 September 2026 and replaced the NCR-26 rates from July 2025; other regional rates change on their own schedule, sometimes in multiple tranches across a year.
Does the ₱780 Metro Manila minimum wage still apply in January 2027?
Not at the moment. The ₱780 rate came from Wage Order NCR-27, which a Pasig City court has blocked since 30 July 2026. NCR-28 has a single ₱60 increase and no second increase, so ₱755 stays the non-agriculture rate until a new wage order is issued or the court lifts the block on NCR-27.
Do the minimum wage rules apply to foreign nationals working in the Philippines?
Yes, when the work is performed in the Philippines under a Philippine employment contract. The wage floor, statutory benefits, and labor-code protections apply to anyone employed locally. Foreign nationals also need the right work permit (typically an AEP from DOLE plus the matching visa) before they can be on payroll.
Is the 13th-month pay required even for employees on probation?
Yes. The only condition is that the employee has worked at least one month in the calendar year, which probationary employees almost always meet. They get a pro-rated 13th month, calculated as 1/12 of the basic salary earned during that period of work, paid by 24 December.
How does Emerhub help with all of this?
Emerhub is a licensed Philippine employer of record. We employ your Filipino team under our entity, run monthly payroll at the correct regional minimum (or any agreed salary above it), pay SSS, PhilHealth, and Pag-IBIG, withhold and remit BIR income tax, and pay the 13th month on schedule. You get a single monthly invoice and no Philippine entity to register, so you can hire compliantly in a few days.
Talk to our Manila team
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