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Minimum Wage Rates in the Philippines 2020 (as of June 2, 2020 )

     The Wage Rationalization Act No.6727, mandates the minimum wage rates in the Philippines 2020. It also authorized the Regional Tripartite Wages and Productivity Boards (RTWPBs) to determine the daily minimum wage rates. The daily minimum wage rate is computed based on industry (non-agriculture, agriculture plantation, non-plantation) per locality (differs per region) and in some cases depending on the number of workers and the capitalization of enterprises (retail and service).

     Last October 30, 2018, a new wage increase was issued under the Wage Orders which apply to all sector workers and employees receiving the daily minimum wage.This increase was implemented with an aim that all minimum wages shall always be above the poverty threshold to help workers and their families meet basic needs.

Minimum Wage Rates in the Philippines 2020
as of June 2, 2020

SUMMARY OF DAILY MINIMUM WAGE RATES PER REGION
Non- Agriculture, Agriculture
AGRICULTURE
REGION WAGE ORDER  No./
Date of Issuance		 DATE OF EFFECTIVITY NONAGRICULTURE Plantation Non-Plantation
NCR WO 22/October 30, 2018 22-Nov-18 Php 500.00 – 537.00 Php 500.00 Php 500
CAR WO 20/October 1, 2019 18-Nov-19 340.00 – 350.00 340.00 – 350.00 340.00 – 350.00
I WO 20/March 19, 2019 30-Apr-19 282.00 – 340.00 295 282
II WO 20/February 4, 2020 16-Mar-20 370 345 345
III WO 22/November 27,2019 1-Jan-20 369.00-420.00 354.00-390.00 342.00-374.00
IV-A WO 18/February 28, 2018 28-Apr-18 317.00 – 400.00 303.00 – 370.00 303.00 – 356.00
IV-B WO 09/October 9, 2018 27-Nov-18 294.00 – 320.00 294.00 – 320.00 294.00 – 320.00
V WO 19/August 14, 2018 21-Sep-18 310 310 310
VI WO 25/October 22, 2019 26-Nov-19 310.00 – 395.00 315 315
VII WO 22/November 26, 2019 5-Jan-20 356.00-404.00 351.00-394.00 351.00-394.00
VIII WO 21/July 22, 2019 18-Aug-19 325 295 295
IX WO 20/June 29, 2018 30-Jul-18 316 303 303
X WO 20/October 9, 2018 1-Nov-18 343.00 – 365.00 331.00 – 353.00 331.00 – 353.00
XI WO 20/June 27, 2018 16-Aug-18 396 391 391
XII WO 21/December 16, 2019 2-Feb-20 336 315 315
CARAGA WO16/April 2, 2019 1-May-19 320 320 320
BARMM WO 01/November 13, 2019 1-Jan-20 300.00 – 325.00 290.00 – 300.00 290.00 – 300.00

 

CURRENT DAILY MINIMUM WAGE RATE IN NCR – National Capital Region

Per Wage Order No. NCR-22
Effective: 22 November 2018

Sector/Industry Basic Wage/Integration of COLA Basic Wage Increase New Minimum Wage Rates
Non-Agriculture ₱512.00 ₱25.00 ₱537.00
Agriculture
(Plantation and Non Plantation)		 ₱475.00 ₱25.00 ₱500.00
Retail/Service Establishments
employing 15 workers or less
Manufacturing Establishments
regularly employing less than
10 workers

This Wage Order covers the Cities of Caloocan, Las Pinas, Makati, Malabon, Mandaluyong, Manila, Marikina, Muntinlupa, Paranaque, Pasay, Pasig, Quezon, San Juan, Taguig, Navotas, and Valenzuela and Municipality of Pateros which  grants the following:

  • ₱25.00/day basic wage increase for all sectors
  • Integration of ₱10.00 COLA under Wage Order NCR-20 into the basic pay

 

Other Facts about Minimum Wage Rates in the Philippines 2020

  • The following categories of establishments are exempted from the minimum wage order :
    1. Distressed establishments;
    2. Retail/service establishments regularly employing not more than ten (10) workers; and
    3.  Establishments adversely affected by natural calamities.
  • Minimum wage earners are exempted from paying income tax according to the National Internal Revenue Code – RA 9504 but their additional income earned from employment, business or practice of profession is subject to income tax as well as  commissions and fixed monthly allowances received on top of the minimum wage. The following are exempted from income tax:
    1. Holiday pay
    2. Overtime pay
    3. Night shift differential pay
    4. Hazard pay
  • Homeworkers and those who are paid on piece rate, sakada, takay, pakyaw or task basis, shall receive not less than the prescribed minimum wage rates under the Regional Wage Orders for normal working hours which shall not exceed eight (8) hours a day.
  • Wage of apprentices and learners shall in no case be less than seventy-five (75%) percent of the applicable minimum wage rates.
  • A qualified disabled employee shall be subject to the same terms and conditions of employment and the same compensation, privileges, benefits, fringe benefits or allowances as a qualified able bodied person based on Sec. 1 of
    RA 10524 or the Magna Carta for Persons with disability).

 

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