Manila: The first tranche of the PHP85 minimum wage hike in the National Capital Region (NCR) took effect on Saturday, increasing the daily minimum pay by PHP60, as announced by the Department of Labor and Employment (DOLE).

According to Philippines News Agency, under Wage Order NCR-27, this initial adjustment elevates the minimum salary for private sector workers in the non-agriculture sector from PHP695 to PHP755 per day. Meanwhile, the rate for the agriculture sector, service, and retail shops with 15 or fewer employees, as well as manufacturing firms with fewer than 10 regular workers, increased from PHP658 to PHP718.

In a statement, DOLE Secretary Francis Tolentino noted that the wage hike aims to enhance the purchasing power of Filipinos and assist them in coping with economic conditions, such as inflation and rising electricity costs. This move follows the directive of President Ferdinand R. Marcos Jr. to improve the quality of life for workers.

The recent wage hike represents the largest increase in Metro Manila to date, impacting over 1.1 million minimum-wage workers in the region. Tolentino reminded employers of the importance of adhering to the wage adjustment, warning that non-compliance will result in penalties as stipulated by law. He also encouraged the resolution of wage distortion-adjustment of salaries above the minimum wage-through collective bargaining agreements between labor and management.

Earlier, Tolentino mentioned that financial assistance would be provided to micro, small, and medium enterprises (MSMEs) affected by the wage hike. Additionally, MSMEs may apply for an exemption within a 75-day period if they qualify.

The additional PHP25 increase is scheduled to take effect on January 20, 2027. Once fully implemented, the daily minimum wage in Metro Manila's non-agriculture sector will be PHP780, while workers in the agriculture, services, retail, and manufacturing sectors (employing fewer than 10 workers) will see their pay rise to PHP743.