Philippines Minimum Wage Laws

Minimum Wage in the Philippines

Overview

• The minimum wage in the Philippines is set by the National Wages and Productivity Commission (NWPC) and the Regional Tripartite Wages and Productivity Boards (RTWPBs)
• The minimum wage varies by region, industry, and employment type

Current Minimum Wage Rates

• As of 2022, the daily minimum wage rates in the Philippines are:
  • National Capital Region (NCR): ₱570 - ₱733
  • Other regions: ₱316 - ₱570
• The minimum wage rates are subject to periodic adjustments based on the cost of living, inflation, and other economic factors

Types of Minimum Wage

• Daily Minimum Wage: the minimum amount an employee should receive for a day's work, usually 8 hours
• Monthly Minimum Wage: the minimum amount an employee should receive for a month's work, usually 22 days
• ** Piece-Rate Minimum Wage**: the minimum amount an employee should receive for a piece of work, usually applied to workers paid by output or productivity

Exemptions and Exceptions

• Certain industries and employers are exempt from the minimum wage law, such as:
  • Small businesses with less than 10 employees
  • New businesses in the first 2 years of operation
  • Businesses in the export processing zones
• Some workers may be exempt from the minimum wage, such as:
  • Apprentices and learners
  • Trainees and students
  • Workers with disabilities

Non-Compliance and Penalties

• Employers who fail to comply with the minimum wage law may face penalties, such as:
  • Fines ranging from ₱10,000 to ₱100,000
  • Imprisonment of up to 3 years
  • Payment of back wages and benefits to affected employees