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In a major boost for workers in Metro Manila, the National Capital Region’s wage board has approved a ₱50 daily increase in minimum wages, effective July 18, 2025. This new adjustment impacts over 1.2 million workers across the region and represents the government’s latest effort to help employees cope with rising living costs.
A Much-Needed Increase
For thousands of workers from cashiers and delivery personnel to service staff and factory employees the raise offers long-awaited financial relief. The last wage adjustment in the NCR took place in 2023. Since then, inflation and economic uncertainty have significantly affected low-income earners, making it increasingly difficult to meet basic expenses.
Under the updated wage order:
- Non-agricultural workers will now earn ₱695 per day, up from ₱645.
- Workers in agriculture, retail, and small manufacturing will see their daily wages increase from ₱608 to ₱658.
For someone working six days a week, this translates to an additional ₱1,300 per month enough to ease costs for transportation, groceries, or school fees.
Why the Wage Increase Now?
The decision follows careful deliberation by the Regional Tripartite Wages and Productivity Board – NCR, which includes labor, business, and government representatives. Several key factors influenced the decision:
- Rising cost of living: Prices of everyday essentials, including food and utilities, have surged in the past year.
- Economic growth signals: The country has seen modest economic recovery, easing inflation and improving job opportunities.
- Persistent labor demands: Workers’ unions have long advocated for higher wages, highlighting the widening gap between income and basic living costs.
The board concluded that a ₱50 increase provides meaningful support for workers while remaining manageable for businesses.
Small Business Concerns
Not all reactions have been positive. Small business owners, many still recovering from pandemic-related losses, worry that the wage hike could strain their operations. Industry groups have requested transitional measures, such as tax relief or subsidies, particularly for micro and small enterprises. Government officials are reportedly exploring support programs and phased implementation for smaller companies.
Real Impact on Workers
While economists note that ₱695 per day may still fall short of a full “living wage” in Metro Manila estimated at around ₱800 per day the increase is still a significant improvement for many employees. For families relying on a single income, the additional daily pay can mean fewer compromises on essentials like rent, food, or school supplies.
Broader Economic Implications
Experts suggest that carefully managed wage increases can benefit the broader economy. As low-income workers receive higher pay, they are likely to spend more on goods and services, stimulating local businesses and potentially creating new jobs. However, future wage adjustments must be paired with investments in worker productivity and training to ensure sustainable growth, particularly for small and medium enterprises.
Looking Ahead
As Metro Manila workers begin receiving higher paychecks, labor groups in other regions are urging similar increases to address wage disparities nationwide. The government has pledged to closely monitor the NCR wage hike’s impact on both employees and businesses in the coming months.
NCR Wage Rates at a Glance (Effective July 18, 2025)
- Non-agricultural workers: ₱695/day
- Agriculture, retail, small manufacturing: ₱658/day
- Monthly increase: ₱1,100–₱1,300 depending on work schedule
Conclusion
Although the wage hike does not completely resolve the financial struggles faced by workers, it reflects a commitment to supporting the workforce and acknowledging their contributions. For employees, it is a financial lifeline. For employers, it presents operational challenges. And for the nation, it is a step forward toward fairer economic growth and stability.