Minimum Wage in Philippines

2026 Minimum Wage Rates

Minimum Wage: Set by Regional Tripartite Boards
Regional Tripartite Wages and Productivity Boards (RTWPBs) set minimum wages per region via Wage Orders. Rates vary by region, industry and job classification.

• ₱695 per day (NCR)
  • Effective 18 July 2025 per Wage Order NCR-26

The minimum wage in the Philippines varies by region and sector. Employers should check the latest wage order applicable to the employee’s work location and industry before finalizing compensation.

For the National Capital Region, the current daily minimum wage rate under Wage Order No. NCR-26 took effect on 18 July 2025.

• Non-agriculture rate increased from PHP 645 to PHP 695
• Agriculture, small service or retail establishments, and small manufacturing establishments increased from PHP 608 to PHP 658.
• Domestic worker minimum wage in NCR increased to PHP 7,800 per month, effective 7 February 2026.

Working Hours

Normal working hours

Not more than 8 hours per day and 48 hours per week (Art. 83, Labour Code). The State encourages employers to adopt a 40-hour work week.

• Rest day

Employees are entitled to a rest period of not less than 24 consecutive hours per week. The employer shall determine and schedule the weekly rest day of employees; preferably Sunday.

• Night shift differential

Every employee shall be paid a night shift differential of not less than 10% of the regular hourly rate for work performed between 10:00 PM and 6:00 AM (Art. 86, Labour Code).

• Meal period

Every employer shall give employees not less than 60 minutes unpaid meal break. This may be shortened to not less than 20 minutes where work is non-manual.

Overtime

Note: The above overtime (OT) codes are baseline codes only. There are 24 additional pay codes covering night differential, overtime in excess of 8 hours, and their combinations.

Seperation Pay

Under Arts. 298–299 of the labour Code (authorized causes), separation pay is required when termination is for labour-saving devices, redundancy, retrenchment to prevent losses, closure or cessation of business, or disease, subject to the applicable statutory conditions. The amount depends on the ground for separation.”

Formula

Separation pay = Monthly rate × applicable rate × years of service (min. 1 month).

• ** ½ month pay: retrenchment, closure not due to losses, disease.
• ** 1 month pay: redundancy, installation of labour-saving devices.

Note on illegal dismissal:

An employee illegally dismissed is entitled to:

1. Reinstatement without loss of seniority;
2. Full back wages from time of dismissal to actual reinstatement;
3. Other benefits.

Separation pay received due to retirement, retrenchment, or redundancy is exempt from income tax under certain BIR rules.

Leave Encashment

Employees are entitled to payment of unused earned leave upon separation, subject to company policy.

Formula:

SIL/AL cash equivalent = Daily rate × unused SIL days

Company-provided leave in excess of the statutory 5 days follows the company policy on encashment. The SIL entitlement does not apply to employees already enjoying vacation leave of at least 5 days with pay.

Please note that all the information listed below are to be used as a general guideline. For more detailed accounts of Philippines employment laws and regulations, please visit the official governmental websites.

Updated on: June 2026