Under Wage Order No. NCR-27, the laborers of Metro Manila will reap an historic wage increase of ₱85 per day from the Department of Labor and Employment. The raise comes from the National Capital Region’s Regional Tripartite Wages and Productivity Board (RTWPB), and is the largest one received in a single adjustment in the region.
The wage board did not plan to phase in the increase over one period of time, but over two occasions to allow employers enough time to adjust payroll and give workers increased wages within the year. All the facts about taking home pay, how it will be calculated each month, and the implementation of the new schedule minimum wage.
When will the new wage increase take effect?
This approved ₱85 wage increase will be phased. The first value is from July 19, 2026, with a ₱60/day increase. Maintenance workers will receive a minimum daily wage of ₱695 to ₱755, while workers in agriculture and service, retail establishments with 15 workers or fewer, will get an increase in wages from ₱658 to ₱718.
Remainder of ₱25 will be effective on January 20, 2027 which is the “second tranche. Once it is implemented, the minimum wage for non-agricultural workers will be ₱780 per day, while the amount for those who do farm work as well as for qualified workers in the agricultural and service sectors will be ₱743 per day.
Who might be exempt from the Wage Increase?
Not all employers will automatically be covered by the wage order. Some premises could be exempt from this requirement because the current guidelines from the National Wages and Productivity Commission (NWPC) allow such exemptions.
These include registered Barangay Micro Business Enterprises (BMBEs), retail and service businesses that regularly employ less than 10 persons and those who have been affected adversely by natural disaster. Eligible employers are still required to abide by the exemption application procedures provided by the wage board.
How to Calculate Your New Monthly Gross Salary?
Estimated monthly salary will vary based on your normal working hours. DOLE refers to “factor days” each year to determine monthly equivalent wages.
5-Day Working Employees
The monthly salary of an employee working 5 days a week (261 factor days) is calculated as follows:
Monthly Gross Pay = (Daily Wage × 261) ÷ 12
Using this formula:
- Current wage (₱695): ₱15,116.25
- Beginning July 19, 2026 (₱755): ₱16,421.25
- Beginning January 20, 2027 (₱780): ₱16,965.00
If workers work on this new schedule, the gains they can reap in their monthly gross pay will be around ₱1,305 for the first tranche and ₱1,848.75 when it is fully implemented.
6-Day Working Employees
If the employee is working 6 days a week (313 factor days), then employ this formula:
Monthly Gross Pay = (Daily Wage × 313) ÷ 12
Assuming the allowable rates:
- Current wage (₱695): ₱18,124.58
- Beginning July 19, 2026 (₱755): ₱19,690.42
- Beginning January 20, 2027 (₱780): ₱20,345.00
This timeframe results in a total net monthly salary raise of about PHP2,220.42 with the first batch bringing approximately PHP1,565.84.
How to Estimate Your Take-Home Pay?
While your gross income goes up, your net income will be according to Government requisition. The bright side for those getting minimum wages is that their personal income without income taxes has not been affected by the Tax Reform for Acceleration and Inclusion Law.
Payroll will still withhold employee contributions for the Social Security System (SSS), PhilHealth and Pag-IBIG Fund. PhilHealth contributions are based on monthly salary and paid by both you and your employer, SSS contributions are based on the official contribution schedule. If you are a Pag-IBIG member, regular employee contributions will continue to be capped at the monthly amount you currently pay.
These deductions of compulsory contributions remove those amounts from the increased monthly gross salary and the net amount is what you take home on a monthly basis.
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What Workers Should Check on Their Payslip?
After reading the bono, employees are advised to refer to their payslips as of the implementing date on July 19, to make sure the ₱60 first trance was applied correctly. Weekly employees might notice the change right after the effective date, and semi-monthly and monthly employees might see the change get applied in the late-July or August payroll cycle.
If the wage adjustment does not show up properly, a worker or employees are encouraged to discuss with the employer’s payroll/human resource official for clarification.
FAQs
At what date will the daily wage rate for workers increase by ₱85 each day?
The initial price hike is for the first ₱60, and the subsequent hike of ₱25 will take effect on January 20, 2027.
What will the new lowest wage in Metro Manila be?
For non-agricultural workers, the first tranche would be at ₱675 and, after that, the minimum wage rate is ₱755 daily. If fully implemented in January of 2027, it will raise to ₱780 per day.
Do workers earning the minimum wage have to pay income tax?
No. Minimum wage earners who are qualified will not be subject to personal income tax under the TRAIN Law, but where they will have to contribute to SSS, Pag-IBIG and PhilHealth.
