The Philippine government announced a 12% increase in the minimum wage for workers in Metro Manila, raising the daily wage for non-agriculture sectors to 780 pesos, effective in two phases starting July 19, 2026 [1, 2, 3]. Labour Secretary Francis Tolentino revealed the hike today, marking the largest single wage adjustment in Metro Manila in over 20 years [1, 2, 3].
The increase will be delivered in two tranches: a 60-peso daily raise on July 19, followed by an additional 25 pesos in January 2027 [1, 2]. Small-scale agriculture, service, retail establishments with 15 or fewer employees, and manufacturing firms with fewer than 10 workers will see a 13% boost, raising daily wages to 743 pesos [1, 2].
More than 1.1 million minimum wage earners across Metro Manila will benefit from the adjustment, a critical step amid persistent inflation challenges in the country [1, 2]. Inflation in the Philippines dipped to 6.8% in May 2026 after reaching 7.2% in April, but it remains well above the central bank’s 4% target ceiling [1, 2]. The government cited inflation pressures as a key reason for the hike.
However, the Trade Union Congress of the Philippines called the increase "grossly inadequate in the face of the collapse in workers’ purchasing power," and criticized the staggered implementation as unfavorable to workers [2]. Their comments highlight ongoing debates about whether the adjustment fully addresses rising living costs.
The first tranche of the wage increase is set to take effect on July 19, with the second tranche scheduled for January 2027 [1, 2]. Employers and workers will monitor the impact closely as the phased pay rise attempts to balance economic pressures with labor market realities.
