First tranche of P85 wage hike in NCR takes effect

The first tranche of the P85 daily wage increase in the National Capital Region took effect on July 25 under Wage Order No. NCR-27. About 1.1 million workers are expected to benefit from the adjustment.

The order, approved on June 23 by the Regional Tripartite Wages and Productivity Board-NCR, raised daily minimum wages for non-agricultural workers from P695 to P755. Workers in agriculture, small retail and service establishments, and small manufacturing firms saw their pay rise from P658 to P718.

The Department of Labor and Employment described the increase as the largest in Metro Manila to date. Acting Labor Secretary Francis Tolentino urged employers to comply, warning that violations would incur penalties under the law.

The wage board cited inflation and the impact of the Middle East conflict as reasons for the adjustment, which it split into two tranches. The second tranche of P25 is scheduled for January 20, 2027.

Labor groups including the Manila Doctors Hospital Employees’ Association had petitioned for the hike. The Foundation for Economic Freedom had called for its suspension, but Malacañang declined to defer implementation.

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Malacañang confirmed the P85 minimum wage increase in Metro Manila will proceed despite private sector calls for suspension.

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The Department of Labor and Employment will use its Adjustment Measures Program to help micro, small and medium enterprises affected by the P85 minimum wage increase in Metro Manila.

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