NCR Regional Wage Board Approves P50 Minimum Wage Increase for 2025

In a significant move to enhance the livelihoods of low-income workers, the National Capital Region (NCR) Regional Tripartite Wages and Productivity Board has approved a P50 increase in the daily minimum wage, effective July 18, 2025. This decision will benefit approximately 1.2 million minimum wage earners in Metro Manila, raising the daily minimum wage from P645 to P695 for the non-agriculture sector and from P608 to P658 for the agriculture sector, as well as for small service and retail establishments employing 15 or fewer workers and manufacturing firms with fewer than ten employees.

The announcement was made by the Department of Labor and Employment (DOLE) on June 30, 2025, which stated that the newly issued Wage Order No. 26 marks the first wage increase in the NCR for the year. According to the National Wages and Productivity Commission (NWPC), this wage hike translates to an increase of approximately P1,100 per month for workers on a five-day workweek and P1,300 for those working six days a week. Consequently, non-agriculture workers will see their monthly take-home pay rise to between P15,247 and P18,216, inclusive of mandatory social welfare benefits such as the 13th month pay, service incentive leave, and contributions to the Social Security System (SSS), PhilHealth, and Pag-IBIG Fund.

Labor groups have welcomed the wage increase, arguing that it is a necessary adjustment given the rising cost of living in Metro Manila. According to Mr. Juan dela Cruz, President of the Workers' Alliance of the Philippines, "This increase is a step in the right direction, but we must continue to advocate for more substantial adjustments to keep pace with inflation and ensure that workers can afford basic necessities."

Conversely, some business leaders express concerns about the potential impact of wage increases on small businesses. Ms. Maria Santos, CEO of a local retail chain, stated, "While we understand the necessity of wage hikes, we must also consider the sustainability of small businesses. Higher wages could lead to increased operational costs that may force some establishments to downsize or reduce their workforce."

The historical context of wage adjustments in the NCR reveals a pattern of periodic increases aimed at balancing the needs of workers with the economic realities faced by businesses. The last significant increase occurred in 2023 when the minimum wage was raised by P30. Experts warn that while incremental wage hikes are essential for supporting workers, they must be accompanied by broader economic measures to ensure that businesses can thrive and that job opportunities continue to grow.

In summary, the P50 minimum wage increase approved by the NCR Regional Wage Board represents a crucial development for workers in the National Capital Region. As the implementation date approaches, stakeholders from various sectors will closely monitor its effects on employment, business sustainability, and the overall economy, with calls for ongoing dialogue between labor groups and employers to address future wage issues effectively. The implications of this wage increase extend beyond immediate financial relief, highlighting the importance of sustainable economic policies that support both workers and businesses in Metro Manila.