Despite increases in daily minimum wages across the country, Filipino workers are feeling the impact of inflation, as real wages in February 2025 were found to be 18.7% to 25.3% lower than the set minimum wages in various regions. This decline in purchasing power means that workers effectively receive between ₱74.26 to ₱129.37 less per day than their nominal salaries due to inflation.
The data, sourced from the Department of Labor and Employment’s National Wages and Productivity Commission and the Philippine Statistics Authority, reveals that inflation-adjusted wages remain significantly below nominal rates in every region.
Metro Manila: Highest minimum wage, but lower real earnings
The National Capital Region (NCR) currently has the highest daily minimum wage at ₱645.00, yet inflation has reduced its real value to ₱517.29. The inflation rate in NCR was recorded at 2.3% in February.
Other regional disparities
Regions with high minimum wages, such as Calabarzon (₱560.00) and Central Luzon (₱525.00), also saw sharp declines in their real wage values, dropping to ₱436.48 and ₱395.63, respectively.
Meanwhile, Bicol Region had one of the lowest minimum wages at ₱395.00, with a real wage value of ₱295.00 after inflation. The Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) reported the lowest real wage at ₱286.74, despite a nominal minimum wage of ₱361.00.
The highest inflation rate was in Cagayan Valley at 3.9%, where the minimum wage stood at ₱480.00, but real wages dropped to ₱368.95. Other regions with significant inflation-adjusted declines include Western Visayas (₱513.00 to ₱390.71) and Northern Mindanao (₱461.00 to ₱358.20).
Wage vs. inflation struggle
The data highlights how minimum wage hikes struggle to keep up with inflation, with all regions seeing a substantial gap between nominal and real wages. These figures reinforce concerns about the cost of living and the financial strain on workers, particularly those in lower-income sectors.
Economists and labor groups continue to call for further wage adjustments and price stabilization measures to help mitigate the impact of inflation on workers’ daily earnings.
