The Amount Of Minimum Wage In The Different Regions Of Philippines

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The era of entrepreneurship makes finding a suitable job a complicated process. In this case, you always consider several essential aspects: the place of work, working hours and, indeed, the salary. Regardless of where you want to find a job, the minimum salary is a significant issue. So, what compensation do most regions of the Philippines offer? Which issues mainly influence it and how to approach getting a job elaborately considering the significant factors?

Minimum Wage Philippines – How It Was?

The Philippines experienced a lot of changes in the job rules and conditions. When it attended the ILO in 1946, the most comfortable laws for the nation were being developed. They made the job suitable for different segments of the population and significantly decreased income inequality. Nowadays, the minimum salary is regarded as the compulsory payment, which is necessarily given to the hired workers due to the constant work period. 

minimum wage philippines 2021

Solving Severe Salary Issues 

The sum of the lowest salary is installed for the whole employment market, and differs due to the job’s specificity. As a rule, the sum is not taxable, which makes the payment of it guaranteed. The setting of a constant sum helped to deal with several essential working issues:

  • Salary doesn’t fall under working contract and can’t be decreased.
  • Effectiveness of the work increases because the lowest salary becomes a motivation factor.
  • Exploitation aspect due to the low salaries was significantly reduced.

What actions of the law did activate the wage installment procedure? What is the amount of it nowadays?

Factors Changing The Salary

Several governmental laws, which were conducted from 1965 to 1990, severely influenced the amount of salary.

They are the following:

  1. Introduction of specific monetary benefits. 
  2. Conduction of the justification law.
  3. Periodic salary revisions and changes of minimum wage.

As a result, the minimum wage was expanded a lot of times in the country. The standard of living was significantly changed, and the salary of approximately 90 PHP in 1990 has increased to 270 in 2021. 

What Is The Lowest Salary Nowadays in the Philippines 2021

The requirements for becoming employed are similar to the other Asian countries’ rules. For sure, the specific jobs usually set the necessity in higher education.

lowest salary philippines

But general rules are following:

  • High school diploma;
  • Certification (optional, but is required in most cases);
  • Opportunity to get training or pass the probation;
  • Work experience (doesn’t influence the minimum wage);
  • Basic knowledge of Filipino and English.

If you pass the general requirements, the employment process may not become a severe issue. Therefore, the minimum wage is guaranteed for you.

List of countries by minimum wage

Forms Of Employment

The regular working hours, considered in most work establishments, are from 8:00 am till 5:00 pm (it means approximately 9 hours of work per day). It is the time when the minimum wage is necessary to be paid. Overtime should be paid due to the conditions of the working contract. The standard forms of employment in the Philippines are following:

  • Full-time workday;
  • Part-time workday (part-time employment);
  • Temporary job;
  • Project work.

The total sum paid to the employees is counted by adding the payment of worktime (discussed in the labor contract) to the minimum wage – it is an accurate indicator in the Philippines.

Labor Contract Establishment

It is a necessary procedure, which is provided during every employment process. Before starting work, the employee should carefully read and understand all the rules and the specific conditions.

The labor contract should include the following data:

  • Names of employer and employee;
  • Date of work’s starting;
  • Workplaces with description;
  • Monthly wage and the time of its payment;
  • Time of work (the hours);
  • Payments above the time; the sum, paid during the weekends (if available) or holidays;
  • Sick leave entitlements;
  • Additional benefits or perks;
  • Notice period;
  • Conditions of ending of employment.

Becoming aware of the contract’s conditions will help avoid inconveniences in further salary payment processes and getting deceived by the different companies.

The Control Of The Minimum Income

The process of salary counting is controlled by several governmental facilities, which consider several essential factors, which may influence the lowest salary, as well as the possibility to cover the vital needs with it. The reasons for wage deviations include enterprise campaigns of every part of the country and the general condition of employment there. 

As a rule, once a year, a wages order is provided due to the analyzed information.

Therefore, 2 forms of salary payment can be provided by the employers:

  1. The «Tier 1» category. It means that only the minimum wage is paid, which guarantees the novice getting a regular income. 
  2. The «Tier 2» category. It is also called the «voluntary payment system» and considers the professional growth of the employees, which supplements the increase of salary.

However, there are several exceptions, which don’t fall under the listed rules. For instance, the employers, whose activities include trading or activities sector and the company has a maximum of 10 workers, can become free from low salary payments (a normal process in the country).

Read more about Salary Grade Philippines

How Is The Salary Counted?

The final salary is strictly dependent on the lowest income and the days dedicated for the job and discussed in the working contract. Therefore, it is counted in the following way:

Monthly income = ( Daily minimum income x Workdays) / 12

For sure, the parameters are different for each specific job, which causes deviations in final salary amounts.

salary Philippines

Wage Depending On The Region

The minimum wage, in fact, is slightly different in each region of the Philippines. The economically powerful regions have the sum of 530-545 pesos a day (considered a national minimum salary, while the areas with low economic conditions have only 249-270 pesos a day. Here you can find the table where the minimum wage of different regions is presented.

National mass media gathered the represented data due to the latest period:

The Name Of The StateThe Lowest Salary (PHP per day)
NCR500 – 535 
CAR340 – 360
Ilocos 280 – 340
Cagayan Valley 345 – 370 
Central Luzon 300 – 420
Calabarzon 290 – 420
Bicol 310 – 320 
Western Visayas 310 – 395 
Central Visayas 351 – 400
Eastern Visayas 295 – 325 
Zamboanga 300 – 316 
Northern Mindanao 331 – 365 
Davao 380 – 396
Soccsksargen 315 – 336
BARMM 290 – 325 

Due to the inflation caused by the COVID-19 pandemic, several regions fell under the several minimum wage decreases. Therefore, the sum in 2021 has changed compared to 2019-2020, which had a severe influence on the general economic condition of the country. Such revisions are regularly done, which forces the government to change some specific rules of salary counting.

Is It Possible To Deal With Common Problems On A Lowest Salary?

For sure, it is complicated to deal with everyday problems with a low salary. The bare requirements of prominent families are dependent on a sum, which is much bigger, than the 270 pesos a day.  For instance, a family of 5 people requires a daily income of 1 000 PHP to deal with ordinary life issues. In other words, it means living for survival. Taking a loan may be a good decision to cope with such a condition, which can be easily done in the Philippines. Several loan companies are following:

The issue of low minimum wage can be easily solved if a fast personal loan is applied. Most of the listed companies provide loans without taking a lot of time on them. Everything required is filling up a specific form by adding individual information and waiting for a call from the loan facility.

To Sum Up

As we see, the minimum wage in the Philippines has been changing for ages. A lot of conducted laws and newly established governmental rules have influenced its growth a lot. The lowest salary is different in each state of the country, depending on the economic condition and the deviations in the economics of the last few years. However, it is tough to deal with common life problems with a minimum salary, so the ways of additional income should be chosen. Therefore, applying for a loan may help deal with such a situation – quick cash loans are available 24/7 for everybody.

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Linda Carters/ author of the article

Financial Journalist on Advance Loans Philippines with 8 years experience in a Fintech niche.

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