MANILA — The first phase of the PHP85 minimum wage increase in the National Capital Region (NCR) took effect on Saturday, raising the daily minimum wage by PHP60, the Department of Labor and Employment (DOLE) said.

Under Wage Order NCR-27, the daily minimum wage for private sector workers in the non-agriculture sector increased from PHP695 to PHP755.

Workers in the agriculture sector, service and retail establishments employing 15 or fewer workers, and manufacturing firms with fewer than 10 regular employees will now receive PHP718 per day, up from PHP658.

In a statement, Labor Secretary Francis Tolentino said the wage adjustment aims to strengthen the purchasing power of workers and help them cope with inflation and higher electricity costs, in line with President Ferdinand R. Marcos Jr.’s directive to improve workers’ quality of life.

DOLE said the latest wage order is the largest wage increase granted in Metro Manila and is expected to benefit more than 1.1 million minimum wage earners.

Tolentino reminded employers to comply with the new wage rates, warning that violations are subject to penalties under existing laws.

He also encouraged employers and workers to address any wage distortion through collective bargaining agreements between labor and management.

The labor chief earlier said the government would extend financial assistance to qualified micro, small, and medium enterprises (MSMEs) affected by the wage increase.

Eligible MSMEs may also apply for exemption from the wage order within the prescribed 75-day period.

The remaining PHP25 increase will take effect on Jan. 20, 2027.

Once the full adjustment is implemented, the daily minimum wage in Metro Manila will reach PHP780 for workers in the non-agriculture sector and PHP743 for those in the agriculture, service, retail, and small manufacturing sectors.PNA