2013 Minimum Wage Increase in Philippines

By: Tax and Accounting Center Philippines

The Regional Tripartite Wages and Productivity Board of the National Capital Regions (RTWPB-NCR) issued Wage Order No. 18 dated September 6, 2013 providing for an increase of the 2013 minimum wage increase in the Philippines, and restructuring of cost of living allowance (COLA) for 2014. This had been a product of public consultations, discussions with the labor groups in the Philippines and deliberations within the Department Of Labor and Employment (DOLE).

P10 increase of 2013 minimum wage in Philippines

Under NCR  RTWPB Wage Order No. 18 – 2013, all minimum wage earners in the National Capital Region shall receive an increase in the existing Basic Wage of Ten Pesos (PhP10.00) per day of eight-hour work. Accordingly, the following are the new 2013 minimum wage rates in the National Capital Region under Wage order No. 18:

• Non-agriculture – P466.00 a day
• Agriculture (plantation and non-plantation) – P429.00 a day
• Private hospitals with bed capacity of 100 or less – P429.00 a day
• Retailers / Service Establishments employing 15 workers or less – P429.00 a day
• Manufacturing establishments regularly employing less than 10 workers – P429.00 a day

The above daily minimum wage includes the P30 a day cost of living allowance or COLA added to the basic daily wage in the Philippines.

P15 integration of COLA to 2014 minimum wage  in Philippines

Under Wage Order No. 18 Philippines, starting January 1, 2014, the P30 a day COLA in the Philippines will be integrate to the daily basic wage to the extent of the P15.00 a day. As such, the new basic wage starting January 2014 shall be as follows:

• Non-agriculture – P451.00 a day
• Agriculture (plantation and non-plantation) – P414.00 a day
• Private hospitals with bed capacity of 100 or less – P414.00 a day
• Retailers / Service Establishments employing 15 workers or less – P414.00 a day
• Manufacturing establishments regularly employing less than 10 workers – P414.00 a day

In effect, NCR RTWPB Wage Order No. 18 does not provide a minimum wage increase for 2014, but simply integrated the P15.00 of the P30.00 COLA to the daily basic wage. The 2014 minimum wage remains the same under Wage Order No. 18, unless a new 2014 Wage Order will be issued.

Coverage of 2013 P10-increase

2013 minimum wage rates under Wage Order No. 18 applies to all minimum wage earners in the private sector in the National Capital Region, regardless of their position, designation or status of employment and irrespective of the method by which they are paid.

Exemption from minimum wage increase

The following establishments may be exempted from the minimum wage rates based on documentation and approval of the Regional Tripartite Wages and Productivity Board (RTWPB):

• Distressed establishment
• Retail / service establishment regularly employing not more than 10 workers
• Barangay Micro Business Enterprises (BMBE)
• Establishments adversely affected by natural calamities

The above exemptions are not automatic and an application for confirmation is recommended.

Effectivity of RTWPB NCR Wage Order No. 18 – 2013

Wage Order No. 18-2013 is effective within 15 days after its publication in a newspaper of general circulation in the Philippines. It was published at Philippine Star last September 19, 2013 and became effective last October 4, 2013. Please click for the copy of Wage Order no. 18 – 2013.

Disclaimer: This article is for general conceptual guidance only and is not a substitute for an expert opinion. Please consult your preferred tax and/or legal consultant for the specific details applicable to your circumstances. For comments, you may please send mail at 

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