As defined by the International Labor Organization (ILO), the minimum wage is “the minimal amount of payment that an employer is obligated to pay wage earners for the job done during a certain time, which cannot be decreased by collective agreement or by individual contract.” In this sense, “wage earners” refer to all employed people, whether they are full-time, part-time, temporary, contract, apprentice, or trainee.
In each ILO member country, it is the employer’s legal responsibility to pay at least the minimum wage. The Philippines joined the International Labor Organization in 1948, shortly after gaining independence. It has since worked tirelessly to secure the best possible conditions for the Philippines’ working class, including raising the national minimum wage Philippines.
A global standard for minimum wages is a powerful tool against the abuse of cheap labor. Minimum wages do not only help employees make ends meet, but they also boost productivity and narrow the pay gap between men and women, or between people of various ages. All types of Filipino employees have a stable working environment because of the required employee perks such as the 13th-month pay, holiday payments, and health and insurance benefits, in addition to the minimum wage.
Philippines Minimum Wage Law 2022
Both the Department of Labor and Employment (DOLE) and the National Wages and Productivity Commission (NWPC) are charged with ensuring that the Philippine Labor Code is enforced fairly and effectively across the country. The Labor Code outlines the fundamentals of employment that all businesses must uphold, including standard workweeks, overtime pay, paid time off, mandated benefits, minimum salaries, and more.
Each region’s minimum wage is set by the Regional Tripartite Wages and Productivity Board (RTWPB) after careful consideration of the region’s GDP growth, unemployment rate, and other economic indicators. In the Philippines, there are two different minimum wage brackets. In the first rung, an employer is merely required to pay the legally mandated minimum wage. Such a system ensures that low-skilled workers, such as recent graduates, may make enough money to cover their basic needs without being exploited by the labor market in the Philippines. Tier2’s optional productivity-based compensation system provides financial incentives to workers who contribute to the company’s success. When workers get a raise like this, it improves their quality of life, making them more motivated and ready to take on new challenges.
There are exceptions to the need for every company to pay its workers at least the minimum wage. For instance, a retail or service business owner with 10 or fewer workers may apply for a waiver from the minimum wage law. Similar to NBEs, firms in financial hardship or those hit by natural disasters may qualify for this exemption under specific circumstances. These leniencies, however, are only accessible for a year. Earners of the statutory minimum wage Philippines 2022 are also free from income tax under the legislation. In addition, it prevents companies from withholding taxes from employees’ paychecks.
The Boards may usually issue a salary order once every year. And after 15 days of a press release or media announcement, it goes into effect. The official media will report on it.
What Is The Philippines’ Minimum Wage In 2022?
In the Philippines, there is no such thing as a legally mandated minimum wage or minimum hours worked. The Philippines has a flexible minimum wage structure that takes into account factors such as occupation, field, and geographic region. The revised minimum wage announcement for 2022, for instance, mandates a daily minimum salary of PHP 433.76 for workers outside of agriculture in the NCR. In contrast, the minimum pay in CARAGA is just PHP 249.80 per month for the same job.
Across the Philippines in 2022, the minimum wage is expected to rise by an average of 3.4% from 2020 levels, as reported by research and analytics firm Picodi. In 2022, a typical salary in the Philippines will be about 44,600 pesos per month. This is the typical amount earned per month, taking into account additional advantages like housing and transportation.
The Philippine Minimum Wage for Certain Occupations
Daily wage occupations are not synonymous with all work. An 8-hour shift is not usually feasible for these types of professions. Time spent working by a live-in housekeeper or nanny, for instance, is difficult to quantify. A teacher in a private school has similar demands, such as having to grade homework outside of class time.
Below are some examples of the minimum monthly salaries that have been set by the government for such workers:
|Job||Minimum Salary per month|
|Security Guard||6090 PHP|
|Domestic Workers||6000 PHP|
Daily Ph Rates for the Minimum Wage
The daily minimum wage in the Philippines varies by province. The daily minimum wage in the Philippines in 2021 was 537 pesos, the same as in 2019. In the long run, the daily minimum wage in the Philippines is projected to rise to around 537 pesos in 2022 and 547 pesos in 2023. While many countries raised their minimum wages in the wake of the epidemic, the Philippines kept theirs at the same level. When the year 2022 rolled around, this story was featured prominently in the Philippines’ most read news outlets.
|NCR||500.00 – 537.00|
|CAR||340.00 – 350.00|
|REGION I||282.00 – 340.00|
|REGION II||345.00 – 370.00|
|REGION III||304.00 – 420.00|
|REGION IV-A||303.00 – 400.00|
|REGION IV-B||294.00 – 320.00|
|REGION VI||310.00 – 395.00|
|REGION VII||351.00 – 404.00|
|REGION VIII||295.00 – 325.00|
|REGION IX||303.00 – 316.00|
|REGION X||331.00 – 365.00|
|REGION XI||381.00 – 396.00|
|REGION XII||315.00 – 336.00|
|BARMM||290.00 – 325.00|
Inflation reduces the legal minimum daily pay in Metro Manila from 537 to 434 pesos. In the Philippines, this is a very high score. In contrast, BARMM has a maximum minimum salary of 325 pesos.
Is It the Law in The Philippines To Raise Salaries Every Year?
Pay increases are not mandated by law but instead rely on individual circumstances. In 2020, several businesses’ revenues were severely impacted by the epidemic, so that workers did not get the rises they had anticipated. The average pay in the nation is expected to rise by 5.6% in 2022. On the other hand, one-fifth of Filipino businesses said they plan to freeze salary increases for 2018.