Manila: The Department of Labor and Employment (DOLE) on Monday reminded private sector employers that the first tranche of the PHP85 daily wage increase for workers in the National Capital Region (NCR) will take effect on July 25.

According to Philippines News Agency, Labor Secretary Francis Tolentino stated that the initial PHP60 increase will be implemented next week following the official publication of NCR Wage Order No. 27 on July 9. The PHP85 wage increase is the largest single daily wage adjustment ever approved in Metro Manila.

The second tranche of PHP25 will take effect on Jan. 20, 2027, completing the wage increase. Once fully implemented, the daily minimum wage in Metro Manila will increase to PHP780. Meanwhile, workers in the agriculture sector, service and retail establishments with 15 or fewer employees, and manufacturing firms with fewer than 10 regular workers will receive a daily minimum wage of PHP743.

Tolentino warned employers that failure to comply with the new wage order would result in penalties. "There are penalties for that. But in Metro Manila, the NCR, the compliance rate is almost 94-95%. It's followed right away. So that's our monitoring for the past wage hikes last year," he said.

The Labor chief also encouraged the use of collective bargaining agreements to address possible wage distortions affecting employees earning above the minimum wage. He added wage adjustment processes are still underway in other regions, with regional wage boards continuing their reviews and consultations.