The July 2025 NCR Minimum Wage Hike
The Department of Labor and Employment (DOLE) confirmed that a ₱50 daily minimum wage hike took effect on July 18, 2025, for workers in the National Capital Region (NCR). This increase, mandated by Wage Order No. NCR-26, is the highest granted by the NCR wage board to date, reflecting the urgent need to boost workers' purchasing power amidst economic pressures.
New Daily Minimum Wage Rates (Effective July 18, 2025):
The ₱50 increase has adjusted the daily minimum wage rates as follows:
Non-Agriculture Sector:
New Rate: ₱695.00 (from ₱645.00)
Agriculture Sector, Service/Retail Establishments (employing 15 or fewer workers), and Manufacturing Firms (employing fewer than 10 workers):
New Rate: ₱658.00 (from ₱608.00)
This wage adjustment is expected to directly benefit around 1.2 million minimum wage earners in the NCR. Additionally, approximately 1.7 million full-time workers earning above the minimum wage may also see adjustments due to wage distortions within their companies.
Who is Covered by Wage Order No. NCR-26?
The new wage rates apply to all minimum wage earners in the private sector in the NCR, regardless of their position, designation, status of employment (regular, probationary, casual, project, seasonal, or fixed-term), or the method by which they are paid (e.g., daily, monthly, piece-rate).
Workers Paid by Result: Including those on piecework, "takay," "pakyaw," or task basis, are entitled to receive the prescribed wage rates for an eight (8) hour workday, or a proportion thereof if working less than eight (8) hours.
Apprentices and Learners: Shall in no case receive less than seventy-five percent (75%) of the applicable minimum wage rates.
Qualified Handicapped Workers: Shall receive the full amount of the minimum wage rate pursuant to Republic Act No. 7277 (Magna Carta for Disabled Persons).
Who is NOT Covered / May Be Exempted?
Certain entities and types of workers are typically excluded or may apply for exemption:
Kasambahay / Domestic Workers: Covered by Batas Kasambahay (Republic Act No. 10361) and have separate wage orders.
Persons in the personal service of another.
Workers of duly registered Barangay Micro Business Enterprises (BMBEs) with Certificates of Authority issued pursuant to Republic Act No. 10644 (BMBE Act of 2014) are not covered by the Minimum Wage Law.
Establishments that may apply for exemption:
Distressed Establishments
Retail/Service Establishments Regularly Employing Not More Than Ten (10) Workers
Establishments Adversely Affected by Calamities (natural or human-induced disasters)
Employers falling into these categories and seeking exemption must file a formal application with the RTWPB-NCR within the prescribed period (e.g., typically within 75 days from the wage order's publication), along with complete supporting documents, in accordance with NWPC rules. The application period for exemption for Wage Order No. NCR-26 is expected to be announced by the RTWPB-NCR.
Implications for Employers in Metro Manila:
Employers in Metro Manila should do the following in order to comply with Wage Order No. NCR-26:
Update Payroll Systems: Immediately adjust payroll systems to reflect the new minimum wage rates for all affected employees starting July 18, 2025.
Review Salary Structures: Evaluate existing salary scales and adjust wages for employees earning above the new minimum to prevent wage distortion.
Wage distortion occurs when the application of the new minimum wage results in the elimination or severe contraction of the pay differential between groups of employees. Employers should consult NWPC Advisory No. 01, Series of 2023, for guidance on correcting wage distortions.
Comply with Reporting: Be aware that DOLE will intensify labor inspections to monitor compliance.
Information Campaign: Ensure employees are properly informed about the wage increase.
The ₱50 minimum wage hike is a huge help to the labor force of the National Capital Region. It's important to note that before implementing this increase, the Regional Tripartite Wages and Productivity Board-NCR (RTWPB-NCR), in its quasi-legislative function, conducted a thorough evaluation of existing socio-economic conditions and the impact on businesses. This included public hearings and consultations with both labor and management representatives, assessing factors such as the Consumer Price Index (CPI), the poverty threshold, labor productivity, and the prevailing economic conditions of various industries and employers' capacity to pay. The increase, therefore, represents a considered balance between the needs of workers for a living wage and the capacity of businesses to sustain operations.
Disclaimer: This article provides general information and should not be considered legal advice. Minimum wage rates and labor regulations are complex and subject to change. Always consult the official website of the National Wages and Productivity Commission (NWPC) or the Department of Labor and Employment (DOLE) for the most accurate and up-to-date information, or seek advice from a qualified labor law professional.