The Philippines Minimum Wage System 2025 is designed to ensure that workers across industries receive fair and just compensation for their labor. Every employer in the country is required to follow these wage laws, as set by the Regional Tripartite Wages and Productivity Board (RTWPB).
With inflation, rising costs of living, and varying economic conditions, the minimum wage differs by region, type of employment, and industry. Non-compliance can put businesses at risk of penalties, lawsuits, and mandatory back payments. This guide provides you with the latest minimum wage amounts, COLA (Cost of Living Allowance), employee benefits, and compensation rules for 2025.
Current Wage Rate in Philippines
| Region | Minimum Wage (PHP/Day) |
|---|---|
| Metro Manila | ₱645 |
| Ilocos Region | ₱400 |
| Cagayan Valley | ₱400 |
| Central Luzon | ₱400 |
| CALABARZON | ₱420.71 |
| Bicol Region | ₱400 |
| Central Visayas | ₱404 |
| Zamboanga Peninsula | ₱404 |
| Northern Mindanao | ₱404 |
| Davao Region | ₱404 |
| Region 12 | ₱404 |
| Caraga | ₱404 |
| ARMM | ₱404 |
The minimum wage system is regularly updated based on cost of living, inflation, industry demands, and regional economy.
Key Highlights of the Minimum Wage System
- Legally Mandated Pay – Ensures employees receive at least the daily minimum wage set by RTWPB.
- COLA (Cost of Living Allowance) – Extra compensation built into wages to counter rising expenses.
- Industry & Region Specific – Rates vary depending on region, employment type, and sector.
- Employer Compliance Required – Failure to follow wage laws may lead to penalties, disputes, and closure risks.
Philippines Average Salary 2025 (By Sector)
| Sector | Average Salary (PHP/Year) |
|---|---|
| IT | ₱300,000 – ₱1,500,000 |
| Finance | ₱400,000 – ₱2,000,000 |
| Engineering | ₱480,000 – ₱2,400,000 |
| Healthcare | ₱360,000 – ₱1,800,000 |
These figures show that while some industries provide higher earnings, workers in many regions rely on minimum wage standards for fair compensation.
Employee Benefits
- Social Security & Insurance Contributions
- Employers must contribute to SSS, PhilHealth, and Pag-IBIG.
- Employees also contribute, with 50% matched by employers.
- 13th Month Pay
- Mandatory for employees who have worked at least 1 month.
- Equivalent to 1/12 of the annual salary, usually paid in December.
- Overtime & Night Shift Rates
- Overtime beyond 8 hours → +25% of hourly rate.
- Night shift → +10% of hourly rate.
- Holiday work → +30% to 100% of daily wage.
Employees Compensation Program 2025
- Private Sector:
- ₱10/month → For salaries below ₱14,749.99.
- ₱30/month → For salaries above ₱14,750.
- Public Sector:
- ₱100/month flat rate, regardless of income.
This contribution provides workplace injury insurance, disability coverage, and medical benefits.
FAQs
Q1. What is the minimum wage in Metro Manila for 2025?
A: The minimum wage in Metro Manila is ₱645/day.
Q2. Is the 13th-month pay mandatory in the Philippines?
A: Yes, all employees working at least 1 month are entitled to 13th-month pay.
Q3. What happens if employers don’t follow minimum wage laws?
A: Non-compliance can lead to penalties, lawsuits, and business risks.
