Philippines Minimum Wage Increase 2025 : In a significant move aimed at easing the financial pressure on workers, the National Capital Region’s wage board has approved a ₱50 daily wage increase for minimum wage earners. The increase, which took effect on July 18, 2025, affects over 1.2 million workers in Metro Manila and marks the latest effort by the government to address the rising cost of living.
A Raise Long Overdue
For many workers across Metro Manila from cashiers and delivery riders to service crew and factory workers the raise comes as a much-needed relief. The last wage adjustment in NCR was implemented in 2023, and since then, inflation and economic uncertainty have only made it harder for low-income earners to stay afloat.
Under the new wage order, non-agricultural workers will now earn ₱695 per day, up from ₱645. Meanwhile, those working in agriculture, retail, and small manufacturing businesses will see their daily wages rise from ₱608 to ₱658.
For someone working six days a week, that ₱50 daily increase translates to an additional ₱1,300 a month enough to help cover the rising costs of transportation, food, or school expenses.
Why the Increase Now?
The decision to raise the minimum wage wasn’t made in a vacuum. It followed weeks of deliberation by the Regional Tripartite Wages and Productivity Board – NCR, which includes representatives from labor, employers, and government.
Several key factors influenced the decision:
- Rising cost of living: From food prices to electricity bills, everyday expenses have surged in the past year.
- Positive economic signals: The country is seeing modest growth, easing inflation, and a recovery in the job market.
- Persistent calls from labor groups: Workers’ unions have repeatedly pushed for wage increases, citing the widening gap between pay and basic needs.
The board ultimately ruled that a ₱50 increase struck a balance between workers’ needs and businesses’ ability to absorb the cost.
Small Business Owners Voice Concerns
However, the hike has not been welcomed by all. Small business owners, particularly those still recovering from pandemic-era losses, say the increase could pose fresh challenges.
Industry groups have asked the government to offer transitional support, such as tax breaks or subsidies, especially for micro and small enterprises. In response, government officials said they are exploring possible assistance schemes and considering phased compliance for smaller businesses.
Real-World Impact on Workers
While some critics argue that ₱695 per day still falls short of a true living wage in Metro Manila which economists estimate to be at least ₱800 per day the increase is still a step forward.
For many workers, especially those supporting families on a single income, the extra ₱50 daily can mean fewer compromises between paying rent or buying school supplies.
The Broader Economic Picture
Economists note that wage increases, when managed properly, can stimulate the local economy. When low-income earners have more money, they tend to spend it boosting demand for goods and services.
This can, in turn, lead to business growth and job creation. But experts also caution that future wage hikes must be paired with efforts to raise productivity, invest in worker training, and ensure that businesses especially SMEs are not left behind.
What’s Next?
As workers begin to feel the effects of the raise in their next paychecks, attention is now turning to other regions of the Philippines. Labor groups in provinces are already pushing for similar adjustments, arguing that wage disparities between Metro Manila and the rest of the country continue to widen.
Meanwhile, the government says it will monitor the implementation of the NCR wage hike closely and assess its effects on both workers and businesses in the months ahead.
At a Glance: New NCR Wage Rates (Effective July 18, 2025)
- Non-agricultural workers: ₱695/day
- Agriculture, retail, service, small manufacturing: ₱658/day
- Monthly increase: ₱1,100–₱1,300 depending on work schedule
Final Thoughts
This recent wage hike may not solve all the financial challenges workers face, but it’s a clear acknowledgment of their hard work and resilience. For employees, it’s a lifeline. For employers, it’s a challenge. But for the country, it’s a step forward in the ongoing pursuit of equitable economic growth.