PHILIPPINES — Minimum wage earners in the National Capital Region will receive a ₱60 daily wage increase effective September 26, 2026. The Department of Labor and Employment announced the publication of Wage Order No. NCR-28, benefiting approximately 1.1 million daily wage earners in Metro Manila.
New Wage Rates for Workers
The wage order raises the minimum wage for non-agricultural workers from ₱695 to ₱755. Agricultural workers, including those in small retail and service establishments and small manufacturing firms, will see their minimum wage rise from ₱658 to ₱718. Both categories receive the same ₱60 daily increase in a single tranche.
The Regional Tripartite Wages and Productivity Board-NCR issued the order following the established tripartite wage-setting process. The order was approved on September 7, 2026, by a 4-3 vote, with government and one employer representative voting in favor. The wage order was published on September 11 and takes effect 15 days later.
Legal Battle Behind the New Order
The issuance of Wage Order No. NCR-28 is directly tied to a legal dispute over Wage Order No. NCR-27. That earlier order, approved on June 23, 2026, granted an ₱85 daily increase in two tranches: ₱60 effective July 25 and ₱25 on January 20, 2027. Employer groups challenged it in court.
The Pasig Regional Trial Court issued a temporary restraining order on July 30, followed by a writ of preliminary injunction on August 13. The court said it needed to weigh workers' interests against businesses' constitutional right to reasonable returns. DOLE continues to challenge the injunction.
DOLE-NCR Director Roy Buenafe explained that Wage Order No. NCR-28 was issued to deliver the first ₱60 tranche despite the unresolved case. He said the regional wage board retains authority to issue another order even after an earlier one has been issued. The remaining ₱25 increase under the original order remains suspended unless the court lifts the injunction.
Lawmakers Question the Move
Several lawmakers raised concerns about issuing a new wage order while Wage Order No. NCR-27 remains in litigation. They warned it could be seen as accepting the court injunction and settling for ₱60 instead of pursuing the full ₱85 increase.
Rep. Sarah Elago of Gabriela party-list said accepting Wage Order No. NCR-28 would make it appear that DOLE agreed the injunction was legal. Another lawmaker asked whether the remaining ₱25 increase scheduled for January 2027 was already gone. Buenafe clarified that further orders remain possible.
Economic Impact and Inflation Risks
Economists flagged that the wage increase may add to inflationary pressures. Emilio Neri Jr., Lead Economist at the Bank of the Philippine Islands, noted that higher wages raise labor costs, particularly in labor-intensive services. He said second-round effects could make inflation more persistent as businesses pass costs to consumers.
Risk analytics firm PSA Intelligence estimated the wage hike could add 0.4 percentage points to headline inflation. The firm also warned that employers may optimize labor costs, potentially affecting low-wage job sectors. Neri identified adverse weather and elevated fertilizer prices as additional risks to food supply.
Employer Compliance and Monitoring
DOLE reminded employers to comply with the new wage rates upon effectivity. The department assured workers that it will monitor implementation to ensure that the increase reaches those who are entitled to it. The wage adjustment reflects President Ferdinand R. Marcos Jr.'s commitment to improving workers' purchasing power and promoting inclusive economic growth.
