Wage Order No. NCR-27 at a glance:
- Non-Agriculture: ₱695 → ₱755/day (July 25, 2026), then ₱780/day (January 20, 2027)
- Agriculture / Service-Retail ≤15 workers / Manufacturing <10 workers: ₱658 → ₱718/day (July 25, 2026), then ₱743/day (January 20, 2027)
- Total increase upon full implementation: ₱85/day
Wage Order No. NCR-27 was issued by the Regional Tripartite Wages and Productivity Board-National Capital Region (RTWPB-NCR) on June 23, 2026, and published in The Philippine Star on July 9, 2026. Under the Wage Rationalization Act (RA 6727), wage orders take effect 15 days after publication. That placed the effective date at July 25, 2026 — not July 19, which had been the initial announcement before the publication date was finalized.
If your payroll has not been updated since July 25, every affected employee has been receiving less than the legal minimum for each cycle that has run. This article covers the new rates by sector, what payroll computations are affected, and the checklist to bring your payroll into compliance immediately.
New NCR Minimum Wage Rates Under Wage Order No. 27
The wage order delivers the increase in two tranches. The first is already in effect. The second follows in January 2027.
| Sector | Previous Rate | July 25, 2026 | Jan 20, 2027 | Total Increase |
|---|---|---|---|---|
| Non-Agriculture | ₱695 | ₱755 | ₱780 | +₱85 |
| Agriculture (Plantation and Non-Plantation) | ₱658 | ₱718 | ₱743 | +₱85 |
| Service/Retail (≤15 workers) | ₱658 | ₱718 | ₱743 | +₱85 |
| Manufacturing (<10 regular workers) | ₱658 | ₱718 | ₱743 | +₱85 |
Source: NWPC official rates. NCR covers Caloocan, Las Piñas, Makati, Malabon, Mandaluyong, Manila, Marikina, Muntinlupa, Navotas, Parañaque, Pasay, Pasig, Quezon City, San Juan, Taguig, Valenzuela, and Pateros. Verify current rates at nwpc.dole.gov.ph before updating payroll.
Who Is Covered and Who Is Not
Wage Order No. NCR-27 applies to all private-sector workers in the National Capital Region, but the rate that applies depends on how the employer's establishment is classified.
Non-agriculture rate (₱755): Applies to most Metro Manila employers, including offices, retail establishments with more than 15 workers, and manufacturing companies with 10 or more regular employees. If your business does not fall into the lower-rate categories below, this is your applicable floor.
Lower rate (₱718): Applies to agricultural establishments, service and retail establishments employing 15 workers or fewer, and manufacturing establishments regularly employing fewer than 10 workers. The worker count that matters is the regular employee headcount, not the total including contractual or project-based workers.
Kasambahay (domestic workers) are not covered by this order. Household helpers in NCR are covered by a separate instrument: Wage Order No. NCR-DW-06, which set the monthly minimum wage for domestic workers at ₱7,800, effective February 7, 2026. If you employ a kasambahay, confirm you are on the correct instrument.
What Payroll Computations Change When the Daily Rate Changes
The minimum wage increase is to the basic daily wage. Because several other statutory pay items are computed as a percentage of the daily rate, a wage floor increase cascades through your entire payroll structure.
- Overtime pay. Ordinary day overtime is 125% of the hourly rate. Rest day overtime is 130% on rest days, 200% on regular holidays. All of these are computed from the daily rate, so the peso amount of overtime increases when the base wage increases.
- Holiday pay. Regular holiday pay for non-worked days is 100% of the daily rate. Worked regular holidays are 200%. Special non-working holidays worked are 130%. These are all floor computations from the daily rate.
- Night differential. Night differential of at least 10% applies to hours worked between 10:00 PM and 6:00 AM. The 10% base is the regular hourly rate, which is now higher for minimum wage earners.
- 13th month pay running total. 13th month pay is 1/12 of total basic salary earned during the calendar year. If an employee was earning ₱695/day from January to July 24 and ₱755/day from July 25 onward, their 13th month pay base changes for the remaining payroll cycles. This needs to be reflected in your year-to-date computation.
- SSS and PhilHealth contributions. If the wage increase moves an employee into a higher SSS Monthly Salary Credit (MSC) bracket or a higher PhilHealth computation base, contribution amounts increase accordingly. Verify the updated bracket for each affected employee.
Employer Payroll Update Checklist
If you have not updated your payroll since July 25, work through this checklist before the next payroll cycle closes.
- Confirm your sector classification. Determine whether your establishment falls under the non-agriculture rate (₱755) or the lower rate (₱718) based on your actual regular employee headcount and industry type.
- Update the daily basic wage for all affected employees to the applicable floor. If any employee is already earning above the new minimum, no update is required for that employee. The wage order sets a floor, not a uniform rate.
- Recompute any payroll cycles that ran after July 25 at the old rate. Those cycles are short-paying affected workers. Compute the shortfall and include it in the next payroll as a correction.
- Update overtime, holiday pay, and night differential formulas or inputs that use the daily rate as a base. In a system that computes these from the daily rate automatically, updating the base wage is sufficient. In a manual or spreadsheet setup, verify each formula.
- Adjust the 13th month pay year-to-date tracker to use the new daily rate from July 25 forward. Do not apply the higher rate retroactively to January.
- Set a calendar reminder for January 20, 2027, when the second tranche of ₱25 takes effect. Non-agriculture will move to ₱780/day and the lower category to ₱743/day.
YAHSHUA HRIS flags minimum wage compliance automatically.
When the NCR wage order takes effect, the system flags employees whose basic pay falls below the applicable floor, recomputes dependent items like overtime and holiday pay from the updated rate, and adjusts the 13th month running total going forward. No manual formula changes required.
See how YAHSHUA handles wage order updatesFrequently Asked Questions
What is the new NCR minimum wage in 2026?
Under Wage Order No. NCR-27, the minimum daily wage for non-agriculture workers in Metro Manila is ₱755 effective July 25, 2026. Workers in agriculture, service and retail establishments with 15 workers or fewer, and manufacturing establishments with fewer than 10 regular workers receive ₱718 per day. A second tranche of ₱25 takes effect on January 20, 2027, bringing the non-agriculture floor to ₱780 and the lower category to ₱743.
When did the NCR wage increase take effect?
The first tranche of the increase took effect on July 25, 2026. This is 15 days after the wage order was published in The Philippine Star on July 9, 2026, as required under the Wage Rationalization Act (RA 6727). An earlier announcement of July 19 was corrected once the publication date was finalized. The second tranche takes effect on January 20, 2027.
Which wage order covers the 2026 NCR minimum wage increase?
Wage Order No. NCR-27, issued by the Regional Tripartite Wages and Productivity Board-National Capital Region (RTWPB-NCR) on June 23, 2026. It grants a total increase of ₱85 per day delivered in two tranches. DOLE Secretary Tolentino described it as the highest daily wage increase in NCR history.
Does the NCR minimum wage increase apply to all workers?
Wage Order No. NCR-27 applies to private-sector workers in the National Capital Region. Kasambahay (household helpers) are covered by a separate instrument: Wage Order No. NCR-DW-06, which set the monthly minimum wage for domestic workers in NCR at ₱7,800, effective February 7, 2026. Government employees are not covered by RTWPB wage orders.
Does a minimum wage increase affect overtime and holiday pay?
Yes. Overtime pay, holiday pay, and night differential are all computed as a percentage of the daily rate. When the daily minimum wage increases, the peso amount of these premium pays increases for workers at or near the minimum. Overtime on ordinary days is 125% of the hourly rate, regular holiday pay for hours worked is 200%, and rest day overtime on a regular holiday is 260%. All of these must be recomputed using the updated daily rate effective July 25.
What happens if an employer does not comply with the NCR minimum wage order?
Non-compliance with a wage order is a violation of the Wage Rationalization Act (RA 6727). DOLE labor inspectors can conduct inspections and issue compliance orders requiring employers to pay the wage differential from the effective date of the order. Continued non-compliance can result in criminal penalties under RA 6727: a fine of not less than ₱25,000 nor more than ₱100,000, imprisonment of not less than two years nor more than four years, or both, at the court's discretion. The responsible officers of the employing company can be held personally liable.
Written by YAHSHUA HRIS Team · Published July 2026
Rates and dates in this article are sourced from the NWPC official wage schedule (nwpc.dole.gov.ph) and RTWPB-NCR Wage Order No. NCR-27, verified as of July 2026. Confirm current rates at the NWPC website before updating payroll. This article does not constitute legal advice.