Hourly minimum compensation

The hourly minimum wage in the Philippines is 86.88 Philippine pesos, as established under Wage Order No. RX-24 issued by the Department of Labor and Employment (DOLE). This rate applies to workers in non-agricultural and agricultural sectors across the region covered by the wage order.

The minimum wage rule sets the lowest hourly compensation that employers must pay to covered employees. It applies broadly to most private sector workers, though certain exemptions exist for domestic workers, government employees, and workers in specific industries with separate wage orders. The rate ensures a baseline standard of living and protects workers from exploitative compensation practices.

Wage Order No. RX-24 is the governing regulation for this jurisdiction. The order establishes both immediate and phased wage increases to allow employers time for adjustment. The first tranche increased the minimum wage by 25 pesos per day, bringing the daily rate to 486 pesos. A second tranche of 14 pesos per day takes effect on May 1, 2026, raising the daily minimum wage to 500 pesos.

Employers operating in the Philippines must ensure all covered workers receive at least the applicable hourly minimum wage for all hours worked. Payroll teams should verify the correct wage order applies to their location and industry, as different regions may have different rates. Records must document compliance with minimum wage requirements. Failure to pay the mandated minimum wage exposes employers to penalties, back pay obligations, and potential legal action by workers or labor inspectors.