Minimum wage rate

McDonalds, an example of business
which gives the minimum wage rate
to its service crew employees
($1.33 per hour) in the Philippines

Workers that are earning minimum wage from non-agricultural sector (i.e. fastfood, cashiers) are earning ₱481 per day ($10.66 as of July 13, 2015). That is equivalent to 8 hours of work. Those who are working in the agricultural sector (i.e. animal farms, plant farms) earn less, at only ₱444 ($9.83) per day. Take note that those amounts are subject to taxes.

Minimum wage rates in the country are not set by law, but only by authorized government agencies, making its actual implementation difficult.

To set an example, McDonalds in the Philippines gives only
₱60.13 ($1.33) per hour for its basic service crew employees. McDonalds in the United States gives at least $7.25 (₱328) per hour to its employees, which is more than 5 times the income the same McDonalds crew earns in the Philippines. However, living costs in the Philippines are much lower than in the United States and other developed countries.

Many small-scale businesses (such as variety stores) do not follow the minimum wage rate because their total gross income is not greater than the total employee wages if in case they do follow the rate. If this rule will be strictly enforced by law, many businesses will close themselves down due to foreseen bankruptcy.