Labor Department Increases Minimum Wage in the National Capital Region
The two-tranche wage order, announced on June 30, is expected to benefit about 1.1 million private sector workers across the National Capital Region.
The Department of Labor and Employment announced on June 30 a daily minimum wage increase for workers in the National Capital Region (NCR), to be implemented in two tranches beginning July 19, 2026, with the second tranche taking effect on January 20, 2027.
The wage increase is expected to benefit about 1.1 million private sector workers in the NCR.
The first tranche will increase the minimum daily wage of workers in the non-agricultural sector to P755. Those working in the agricultural sector, retail and service establishments with 15 or fewer workers, and manufacturing firms employing fewer than 10 workers will have their minimum daily wage adjusted to P718.
The second tranche will increase the minimum daily wage for non-agricultural sector workers to P780, while those in agriculture, retail, and service establishments with 15 or fewer workers, and manufacturing firms employing fewer than 10 workers will receive a minimum daily wage of P743.
“While we recognize the legitimate aspiration of Filipino workers for better wages amid the continuing rise in the cost of living, we believe that wage determination must take into account the capacity of enterprises —particularly micro, small, and medium enterprises — to absorb significant increases in labor costs while preserving jobs, maintaining business, and sustaining investments,” Perry A. Ferrer, Philippine Chamber of Commerce and Industry (PCCI) president, said in a July 1 press statement.
He said that wage increases – when not accompanied by productivity gains and reductions in the cost of doing business – run the risk of fueling inflation, weakening competitiveness, and discouraging investments.
Employers operating on thin margins will be compelled to rationalize operations, PCCI National Director for Labor and Employment Butch Guerrero said.
This could mean streamlining procurement, renegotiating supplier contracts, delaying expansion, or accelerating automation.
“These adjustments, while necessary, may ripple across the formal and informal sectors of the economy, ultimately affecting the livelihoods of the country’s nearly 50-million workforce,” Guerrero said in the same press statement.
Recent wage adjustments were made in response to economic conditions and the needs of workers, and not as a distraction from other public concerns, according to Labor Secretary Francis N. Tolentino in a July 1 Facebook post.
The previous minimum wage in the NCR, as of July 18, 2025, was between P658 and P695.
Frequently Asked Questions
As of July 19, 2026, the daily minimum wage for non-agricultural sector workers in the NCR rises to P755. Workers in agriculture, retail, and service establishments with 15 or fewer employees, and manufacturing firms with fewer than 10 workers will receive P718 per day.
The second tranche takes effect on January 20, 2027. It raises the daily minimum wage for non-agricultural workers to P780, and those in agriculture, smaller retail and service establishments, and small manufacturing firms to P743.
The Department of Labor and Employment estimates that approximately 1.1 million private sector workers in the National Capital Region will benefit from the wage adjustment.
As of July 18, 2025, the daily minimum wage in the NCR ranged from P658 to P695, depending on the sector.
The Philippine Chamber of Commerce and Industry (PCCI) has cautioned that the adjustment may strain micro, small, and medium enterprises operating on thin margins. Possible responses from affected businesses include renegotiating supplier contracts, delaying expansion plans, and accelerating automation. The PCCI has also warned that wage increases not paired with productivity improvements or lower costs of doing business could fuel inflation and weaken the country’s economic competitiveness.
