Hourly minimum compensation

The hourly minimum wage in the Philippines is 89.75 Philippine pesos, as established under Wage Order No. RX-24. This rate applies to workers in non-agricultural and agricultural sectors across the region covered by the order. The minimum wage sets the floor compensation that employers must pay employees for each hour of work, ensuring a baseline standard of living for the workforce.

Wage Order No. RX-24 is issued by the Regional Tripartite Wages and Productivity Board (RTWPB) and derives its authority from the Labor Code of the Philippines. The order establishes mandatory wage floors that apply to all covered employers and workers within the specified jurisdiction.

The wage order implements a phased increase structure. The first tranche increased the minimum wage to 486 Philippine pesos per day, followed by a second tranche scheduled for May 1, 2026, which will raise the rate to 500 Philippine pesos per day. These incremental adjustments are designed to manage inflation while allowing businesses time to adjust their payroll budgets.

Employers operating in the Philippines must ensure all employees receive at least the statutory minimum wage for hours worked. Payroll teams should monitor the scheduled May 2026 increase and prepare systems and budgets accordingly. Failure to comply with minimum wage requirements can result in penalties and back-wage liabilities. Employers should verify which wage order applies to their specific region, as different areas may have different rates, and maintain accurate time and attendance records to demonstrate compliance with hourly compensation requirements.