Philippines Capital Region Minimum Wage Increases

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By Jared Mondschein

June 14—The daily minimum wage in the National Capital Region of the Philippines increased across all economic sectors by 10 pesos ($0.21) on June 2, according to Wage Order No. NCR-20 issued by the National Wages and Productivity Commission May 17, 2016.

Under the new daily rates, the non-agricultural sector's minimum wage increased to 491 pesos ($10.60) from 481 pesos ($10.38) while the minimum wage for the agricultural, retail and manufacturing sectors each increased to 454 pesos ($9.80) from 444 pesos ($9.59).

The increase is the result of the introduction of a new cost of living allowance of 10 pesos ($0.21) and the integration of the old cost of living allowance into the basic wage, the commission's wage order said.

The Philippines' National Capital Region includes the cities of Caloocan, Las Pinas, Makati, Malabon, Navotas, Mandaluyong, Manila, Marikina, Muntinlupa, Paranaque, Pasay, Pasig, Quezon, San Juan, Taguig, Valenzuela and the Municipality of Pateros.

Each of the 16 administrative regions outside of the National Capital Region individually sets minimum wage requirements.

Daily minimum wage requirements for regions outside of the National Capital Region vary for nonagricultural workers between 225 ($4.85) and 364 Philippine pesos ($7.86). Daily minimum wage rates for agricultural workers in these regions vary between 227 ($4.90) and 337.50 Philippine pesos ($7.29).

Minimum wage earners in the Philippines are exempt from paying income tax on their wages, hazard pay, holiday pay, night shift differential and overnight pay.

To contact the reporter on this story: Jared Mondschein at jmondschein@bna.com.

To contact the editor responsible for this story: Michael Baer at mbaer@bna.com.

For More Information

Wage Order No. NCR-20 is available at http://www.nwpc.dole.gov.ph/pages/ncr/cmwr.html.

The minimum wages for all regions of the Philippines can be found at http://www.nwpc.dole.gov.ph/pages/statistics/stat_current_regional.html.

More information on payroll issues in the Philippines can be found in the Philippines country primer.