Minimum Wage In The Philippines 2011

The minimum wage in the Philippines is set in each region. Thus the minimum wage in the Philippines varies a great deal based on where one lives. The minimum wage in the Philippines is quite low and it is set by the day rather than the hour. When the minimum wage rate is increased it is increased by the amount paid each day.

Department of Labor and Employment — Information Purposes Only

The low minimum wage in the Philippines is a major reason why outsourcing work to the Philippines is appealing to many companies both small and large. If I had the cash or an in place client base, I would setup such a company in the Philippines. By hiring 10 Filipino you would meet the major requirement for a Special Visa For Employment Generation (SVEG).

Increases sought in the Philippines Minimum Wage

Starting in March of 2011, I began to notice a lot of labor groups holding press conferences demanding increases in the minimum wage for the Philippines. In April these calls increases. There were demonstrations in parts of the country. Mostly these demonstrations took place in the Manila area. With inflation on the rise at around an expect 4.5% for the year, the groups vocal. Even militant groups joined in the demonstrations burning an effigy of President Aquino’ s Porsche.

Groups in the National Capital Region (NCR) demanded an increase of P122 ($2.83) a day some groups asked for more.

Bangko Sentral ng Pilipinas, the central bank of the Philippines issued a warning during the debates.  They warned of inflationary pressures and urged wage board to keep any increases in the minimum wage in the Philippines below P25 per day.

Minimum Wage In The Philippines Increases

May is the month that wage hikes usually come.  The wage boards in each region meet to issue an order for an increase in the minimum wage in the Philippines.

So far, I’ve seen two regions announce their increases.  Those are the NCR and Eastern Visayas:

  • NCR — National Capital Region: Granted a minimum wage increase of P22 per day.
  • CAR – Cordillera Administrative Region grants a minimum wage increase of P12 per day.
  • Region I Ilocos — grants a minimum wage increase of P18
  • Region II Cagayan Vally — Minimum wage in the Philippines for Region II is P10
  • Region III Central Luzon — Increase of P14 per day for the minimum page in Central Luzon
  • Region IV A CALABARZON – Increase of P17
  • Eastern Visayas — Granted a minimum wage increase of P23 per day
  • Central Visayas —  Expected to increase the minimum wages but caught up in legal red tape
  • Northern Mindanao — Minimum Wage Increased by P17 per day.
  • Central Mindanao — No Minimum Wage Increase for 2011
  • Western Visayas — Increase of P12 for the minimum wage in the Philippines for Bacolod and Negros Occidental. This increase is for three months only.

The wage board in the Central Visayas says it met today.  I will add all other increases in the minimum wage within the Philippines as they are released.

Rate of  Minimum Wage In The Philippines by Region

The minimum by region will be monitored and added to this list as each board releases its new minimum wage for that region in 2011.

  • NCR — P426 Set May 2011
  • CAR (Cordillera Administrative Region)  – P272 minimum wage per day set January 11 2011
  • Region I Ilocos — P248 Philippines minimum wage set January 20th 2011
  • Region II, Cagayan Valley — P245 granted daily minimum wage in the Philippines of P245
  • Region III  Central Luzon — P330 June 1, 2011
  • Region IV A CALABARZON — P232 January 15, 2011
  • Region IV B MIMAROPA – P664 November 2010
  • Region V Bicol  – P247
  • Region VI Eastern Visayas – P253 May 2011
  • Region VII Central Visayas — TBD
  • Region VIII Western Visayas – P277
  • Region IX, Zamboanga Peninsula — P255, September 2010
  • Region X, Northern Mindanao – PP286 Set July 2011
  • Region XI, Davao Region — Minimum wage in the Philippines for Davao  P286 set 9/2010
  • Region XII Central Mindanao — P260 Set  October 2010
  • Region XIII Caraga — P232 set August 2010
  • Autonomous Region in Muslim Mindanao  – P222 minimum wage in the Philippines set August 2010

I will continue to monitor the announcements.  As more wage boards release their increases to the minium wage in the  Philippines, I will update this article with the new information.

The low wages for Filipino are a burden for many but jobs are still hard to come by in most parts of the Philippines. The low minimum wage in the Philippines and the low land cost are primary reasons for keeping the cost of living low in the Philippines. The low labor cost in the Philippines is set in each region. The low minimum wage in the Philippines makes it easier for Americans and other Westerners to live in the Philippines during their retirement.  It also brings industry from around the world and is major reason for economic growth in the Philippines.  The growth factor is likely the main factor that is considered by law makers.  It is rightly based on what is best for the Philippines.  My guess is, once more Filipino are working, the market will become on favoring labor and the minimum wage in the Philippines will begin to rise sharply.  With widespread unemployment, the minimum wage in the Philippines is likely to remain low for some time to come.

You can find more articles about minimum wage in the Philippines here.

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