First tranche of P85 daily wage hike in NCR takes effect

MANILA, Philippines — The first tranche of the P85 daily wage hike in the National Capital Region took effect on Saturday, July 25.

Under the first tranche of the Wage Order No. NCR-27, Metro Manila minimum wage earners will get a P60 increase in their daily salary.

Article continues after this advertisement

This effectively adjusts the income of those in the non-agricultural sector from P695 to P755, while those in the agriculture sector, service and retail shops with 15 or fewer employees, and manufacturing firms with fewer than 10 employees will have salary increases from P658 to P718.

Meanwhile, the second tranche which will guarantee a P25 wage increase will take effect on January 20, 2027. This will bring the daily minimum salary for the non-agriculture sector to P780, and P743 for those in the agriculture sector, service and retail shops with 15 or fewer employees, and manufacturing firms with fewer than 10 employees.

With this, the Department of Labor and Employment (Dole) said that this wage hike is the “largest in Metro Manila to date,” where 1.1 million workers are expected to benefit from.

“In line with the implementation, the labor chief continues to remind employers to follow the wage adjustment, as non-compliance will result in penalties set by law. He also urged resolving wage distortion, or the adjustment of salaries above the minimum wage, through collective bargaining agreements between labor and management,” the Dole said in a press release.

Article continues after this advertisement

Despite the call of a non-government organization Foundation for Economic Freedom to the government to suspend the implementation of the wage order, the Palace earlier said that it will not defer the wage hike.

The group said that it should be suspended until the spirit of tripartism is upheld and a consensus among employers, labor, and government is reached.” /das

Article continues after this advertisement