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SALARY PAYMENT IN Philippine Peso (₱)
CONTRACT LANGUAGES Tagalog / English
PAYROLL TAX 11.75% + Provident Fund
PAYROLL CYCLE Monthly
TIME TO HIRE 12 hours
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Philippines
The minimum wage or minimum salary in the Philippines is the minimum amount an individual can be paid under Philippines labor law. The minimum wage in the Philippines is not uniform across the country but varies depending on the region, sector, and type of employment. Here we explain the different minimum wages in the Philippines, how it is determined, and its implications for workers and the economy.
The minimum wage in the Philippines can vary a lot depending on region. In 2024, the minimum wage in Manila, the capital city of the Philippines, ranged from PHP 530 to PHP 610 per day, depending on location and the classification of the business. For an 8-hour day, this would mean the minimum wage in the Philippines per hour is between PHP 66.25 and PHP 75 per hour.
In the Philippines, the minimum wage is set by the Regional Tripartite Wages and Productivity Boards (RTWPBs) under the Department of Labor and Employment (DOLE).
The RTWPBs review the minimum wage rates annually or as needed. Factors considered in setting the minimum wage include the cost of living, inflation rates, economic performance, and regional productivity. This process allows for a more tailored approach that considers the unique economic conditions of each region.
Yes, there are significant regional variations in the Philippines for minimum wage. The minimum wage tends to be lower in regions outside of the Metro Manila area, especially in the Visayas and Mindanao regions.
In some area, minimum wage could be as low as PHP 37.5 to PHP 50 per hour.
| Region | Daily Minimum Wage (PHP) |
|---|---|
| National Capital Region | 570-610 |
| Region I (Ilocos Region) | 340-400 |
| Region VII (Central Visayas) | 404-366 |
| ARMM (Autonomous Region in Muslim Mindanao) | 326-290 |
Note: These rates are subject to change. Please refer to the DOLE or the official RTWPBs websites for the latest rates.
In general, the minimum wage in the Philippines has increased over the past five years to address inflation and improve the living conditions of workers. In 2016, average minimum wage in the Philippines was roughly PHP 57 per hour. Today, the average minimum wage in the Philippines has increase to roughly PHP 71 per hour.
Vietnam, Indonesia, and Singapore are countries that surround the Philippines. Below is the minimum wage in each country in USD:
No. However, as a matter of practice it should be noted that foreign employees in the Philippines tend to earn more than locals.
Your business can easily hire employees in the Philippines without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.
The median salary in the Philippines is between PHP 16,000 and PHP 21,000 per month. Minimum wage in the Philippines for a 5-day work week will result in PHP 11,400 per month.
In comparison to other countries the difference in minimum wage and median wage is not that much. The PHP 4,600 to PHP 9,600 works out to be a difference of USD 83 to USD 174 per month.
Considering the Philippines is a country that has a close minimum wage to median wage then yes, this is possible. It is recommended to offer contracts that are closer to median wages to get the highest skilled employees, however, getting highly skilled employees closer to the minimum wage in the Philippines is not an impossible task.
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71 Robinson Road #13-153
068895, Singapore
+65 3105 1170
Skalitzer Str. 85/86
10997, Berlin
+49 30 3119 9653
1700 S. Lamar Blvd Suite 338
Austin, Texas 78704
+1 (737) 265-6065
See more locations
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