Minimum Wage Philippines 2025: Full List of Regional Increases & Government Updates

The discussion around minimum wage has always been an important topic in the Philippines. With inflation, the rising cost of goods, and the daily challenges faced by millions of workers, wage adjustments often bring hope but also spark debates. In 2025, several regions across the country have approved new wage orders, while others are reviewing possible increases. At the same time, lawmakers are pushing for a legislated national wage hike that could affect all private-sector workers.

This article explores the regional increases already in effect, government updates on pending wage adjustments, and the broader discussions surrounding wage policy in the country this year.

Understanding How Wages Are Set in the Philippines

The Philippines does not follow a single national minimum wage. Instead, wage rates are determined at the regional level. Each Regional Tripartite Wages and Productivity Board studies economic conditions, employment levels, cost of living, and the capacity of businesses before recommending wage adjustments. These recommendations are then approved and implemented through wage orders.

This system recognizes that economic conditions differ widely across the country. Urban centers like Metro Manila have much higher costs compared to rural provinces. While this ensures flexibility, it also creates significant wage gaps between regions.

Metro Manila Wage Increase

In July 2025, Metro Manila workers received one of the most notable wage increases in recent years. The daily minimum wage for non-agricultural workers rose by 50 pesos, moving from 645 to 695 pesos per day. For those in agriculture, retail and service establishments with 15 or fewer workers, and small manufacturing with 10 or fewer workers, the rate increased to 658 pesos per day.

This adjustment was designed to benefit more than a million workers in the National Capital Region. For employees working five days a week, the increase translates to about 1,100 pesos more per month, while those working six days a week gain around 1,300 pesos. It reflects the government’s effort to cushion workers against the effects of rising prices.

Bicol Region Wage Adjustment

In April 2025, the Bicol region saw a 40-peso increase in daily wages. This was welcomed by labor groups, who had long argued that wages in the region were falling short of the actual cost of living. The adjustment provides some relief but debates continue about whether the increase is enough to cover the daily needs of an average family.

Northern Mindanao Changes

Northern Mindanao implemented increases ranging from 23 to 35 pesos earlier in the year. The adjustment varied depending on industry and location within the region. Although the increase was smaller compared to other regions, it marked a positive step in supporting workers who had faced stagnant wages despite increasing living expenses.

Davao Region Increase

In March 2025, workers in Davao began receiving a 29-peso increase in their daily pay. This development was significant as the region has one of the fastest growing economies outside Luzon, with a booming service and agricultural sector. The wage hike was intended to keep up with this economic growth and provide fair compensation for laborers.

Caraga Region Hike

Caraga started the year with a 50-peso increase in January 2025. It was one of the earlier regions to approve new wage rates. The raise was a welcome move for workers in the mining, agriculture, and services sectors, which dominate the region’s economy.

Calabarzon Adjustment

Calabarzon, a hub for manufacturing and industry, approved an increase that raised the daily minimum wage for non-agricultural workers from 525 to 600 pesos. Agricultural workers also saw a rise, with wages moving from 508 to 525 pesos. For retail and service establishments with 10 or fewer workers, the new rate is 508 pesos. These changes are scheduled to take full effect in tranches by October 2025.

This adjustment was particularly significant as Calabarzon is home to many economic zones and factories employing thousands of workers. Labor groups in the region had been campaigning for a higher wage for years.

Central Luzon Increase

Central Luzon followed with a wage order that granted increases ranging from 50 to 66 pesos depending on the province and sector. The new rates took effect in April 2025. For example, workers in provinces like Bulacan, Pampanga, and Tarlac are now receiving the adjusted daily rates. The phased implementation aims to balance workers’ needs with the capacity of small and medium enterprises to cope with higher labor costs.

Regions Still Under Review

Several regions have not yet implemented new increases for 2025. Some had already approved adjustments in late 2024, and their boards are waiting until later in the year to review whether further hikes are needed. These include Ilocos, Cagayan Valley, Eastern Visayas, Zamboanga Peninsula, Soccsksargen, and parts of the Bangsamoro Autonomous Region. Workers in these areas continue to press for immediate action, citing high costs of food, fuel, and housing.

National Wage Hike Proposal

Beyond the regional wage boards, Congress has been debating whether to approve a legislated national wage increase. The House of Representatives passed a bill proposing a 200-peso daily wage hike, while the Senate approved a more modest 100-peso increase. These two proposals must be reconciled before they can be sent to the President for signing.

Labor groups are strongly pushing for the higher increase, saying it is necessary for workers to survive amid inflation. Business groups, on the other hand, caution that such a large across-the-board hike could force smaller enterprises to cut jobs or raise prices. Government officials have stressed the importance of striking a balance that ensures workers’ welfare without endangering business stability.

Impact on Workers and Employers

For workers, these increases bring hope and some relief. The extra income can help cover basic needs such as food, transport, and schooling. However, many still argue that even with the new rates, the minimum wage remains below the estimated family living wage in most regions.

For employers, the wage increases require careful planning. Payroll systems need to be updated, budgets adjusted, and cost management strategies reviewed. While large companies may absorb the costs more easily, small businesses may struggle without support measures such as tax relief or subsidies.

Challenges Moving Forward

One of the biggest challenges is ensuring that wage adjustments keep pace with inflation. Even with increases, if prices of basic goods continue to rise faster than wages, the real value of workers’ income diminishes. Another challenge is balancing regional differences with the push for a national wage hike. While a uniform increase could reduce inequality, it may not reflect the diverse economic realities across provinces.

What Lies Ahead

The next few months will be crucial. Lawmakers must decide whether to approve a national wage law and what form it will take. Regional boards that have not yet acted will likely face stronger calls from labor groups. At the same time, the government will need to consider support for small and medium enterprises to help them adjust.

For Filipino workers, 2025 represents both progress and uncertainty. Wage hikes in several regions have offered some relief, but the bigger question remains whether these changes are enough to close the gap between minimum wage and the true cost of living.