Minimum Wage Philippines 2021: Every Information You Need To Know!

The Philippines has had one of the smallest increases in inflation among all major economies. In our blog post, you will learn about the minimum wage Philippines and how it affects our lives. Scroll down and discover more!

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Definition Of Minimum Wage 

Minimum Wage Philippines - The Smallest Wage You Can Receive

The Smallest Wage You Can Recieve

Based on the ILO (International Labour Organization), the minimum salary is an employer’s amount to pay to employees for working. It cannot be reduced by an agreement between employers or an individual contract, and it varies across the globe.

The term “wage earners” refers to people in all sorts of employment, regardless of the type. It could include regular, casual workers or temporary staff like interns and apprentices; short-term contractors who are often called on as needed.

The minimum salary refers to a rate of income set by law below which an employee cannot legally be paid. Before the ILO was created, the Philippines did not have any minimum wage law. In 1948, after gaining independence from Japan, Filipinos became part of the ILO. 

Minimum payments are a crucial part of the Filipino workforce’s survival, enabling them to afford basic living expenses. They also perform as a safety net for employees who might not make enough money at their jobs without it. 

The History Of Minimum Wage Philippines

The minimum wage was increased 12 times in just over 30 years, based on various factors. These included inflation, location, and type of work.

Cost of living adjustments, or COLA, and other supplemental pay options were implemented to help individuals meet the increasing living expenses within the US. 

Yet, as time progressed and more people immigrated to the country, these additional monetary benefits were not enough to maintain a reasonable lifestyle effectively. 

As an alternative example, Republic Act No. 6727 was introduced in 1989, also known as the Wage Rationalization Act. This law established the National Wages and Productivity Commission (NWPC) and The Regional Tripartite Wages and Productivity Boards (RTWPB). 

Philippines Minimum Wage Law In 2021

Workers In Factory

Workers In The Factory

The Employment and Department of Labor is the Philippine government agency that enforces labor codes. 

This law says that employers must obey certain rules. For example, employers must pay people for working overtime, give them time off if they need it, and pay them the least amount of money for the job they do.

In the Philippines, there are two different forms of minimum wage. Tier 1 ensures that an employee’s earnings will never fall below a certain level even if it is not enough for their basic needs. While in other countries, this can happen as long as they don’t quit or get fired from their job.

Still, with tier 2, you have more opportunities to make progress within your company and enjoy bonuses based on how well things go. 

The payment order is usually published in a newspaper or media outlet. After 15 days from publication, it becomes effective, and you can find out about this information on the board’s website.

See also: What is weighted average cost of capital (WACC)? Formula of WACC

Learn About The Philippines Minimum Wage In 2021

The minimum wage in the Philippines is a confusing topic. There are no universal standards, and it varies depending on where you work and what industry or occupation you’re doing at that moment! 

The new 2021 notification sets PHP 433. 76 for non-agricultural laborers, but if I lived near CARAGA, my daily pay would only be about PHP 249. 80.

Picodi’s research and analytics company announced that the average salary in the Philippines is about 44,600 pesos per month. This number includes housing, transportation expenses as well!

Minimum Wage Rate Philippines For Specific Jobs

Living Expenses and minimum wage philippines

Living Expenses 

We can’t always measure the time spent working for an employer. For instance, there are live-in housemaids who need to come into their home and care for its inhabitants but don’t have set hours. That’s why it isn’t easy to know how many services they provide each day.

Not all jobs fall under this category either. Other professions like private school teachers may require preparation outside work conditions or evaluation of students’ answer sheets after class has finished.

Job Monthly Minimum Salary (PHP)
Security Guard 6090
Domestic Workers 6000
Teachers 14,300

Daily Minimum Wage Ph Rates

The Philippines has a new minimum payment that will change on an annual basis. In 2021, the average daily rate was 537 pesos, but this varies depending on where you live in the country and what region of Metro Manila it is located within. 

The long-term goal for 2022 through 2023 values is approaching 500+. However, if there’s another pandemic or major epidemic, they may need more funds available internally to impact our local economy negatively.



What Are The Loans For People Who Live On Minimum Wage?

Estimate The Daily Expense

Estimate The Daily Expense

Living on a low salary can be very difficult when you don’t have the income necessary to meet your expenses. Banks are unlikely or unwilling to provide loans, leaving people in this position with no choice but to take out expensive payday loans.

If there is a time lag in processing your loan application, it could be due to the eligibility criteria. Loans without licenses and exorbitant interest rates are offered by lenders who operate outside of normal banking channels.

Fees don’t just add additional stress on top – they’re one primary reason why people end up with debts they can never get out from under!


Minimum Wage Philippines provides a sort of safety net for people who’ve begun to offset their working expenses. It can give you a significant level of protection from any tactics that may be deployed against you by other parties in your line of work. 

However, this type of cover is insufficient in the face of the rising costs of living and the high risk imposed on one’s livelihood by illness or unemployment. We hope our post is informative for you. Thanks for reading, and see you soon in the next series.

See also: What is credit risk? What are the causes and consequences

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