Philippines Increases Filipino Domestic Workers Minimum Wage to $500

The Philippine government has announced a major wage increase for Filipino domestic workers working in the Gulf region and other countries. Starting October 22, 2025, the minimum monthly salary for these workers will rise from $400 to $500. This is the first wage adjustment in nearly 20 years.

This change reflects the government’s goal to improve the welfare of Overseas Filipino Workers (OFWs) and recognize their vital contributions, especially those in domestic roles like caregiving, household management, and supporting education at home.

Why the Wage Increase Is Needed

The wage increase comes after almost two decades without salary adjustments, despite inflation and the rising cost of living. Since 2006, Filipino domestic workers’ salaries stayed at $400 per month, which lost much of its value over time.

The Department of Migrant Workers (DMW) issued an advisory in 2025 to implement this wage increase. The new $500 minimum wage applies to both new and returning workers, making it fair for all. Employers will have a six-month transition period to update contracts and adjust salaries.

How the Wage Increase Will Work

This new policy covers Filipino domestic workers in various countries, especially Gulf Cooperation Council (GCC) states, which include Saudi Arabia, UAE, Qatar, Kuwait, Bahrain, and Oman. These countries employ a large number of Filipino domestic workers, who total more than 1.5 million worldwide.

In Kuwait, where many Filipino domestic workers are employed, this announcement has boosted interest among workers looking for overseas jobs. Bassam Al Shammari, a domestic labor affairs expert, said the wage increase reflects the value of their work and may help ensure a steady supply of workers after years of restrictions.

The DMW also instructed that all employment contracts include the new wage rate. Migrant Workers Offices (MWOs) will coordinate with host countries and recruitment agencies to ensure smooth implementation.

Global Standards and Comparisons

The wage increase also aligns with international labor standards. The International Labour Organization (ILO) Convention No. 189 requires fair pay, safe working conditions, and social protection for domestic workers.

Other countries have also increased domestic worker wages. For example, in Hong Kong, wages increased from HK$4,990 (US$641) to HK$5,100 (US$655). This shows a global trend of valuing domestic workers fairly.

Challenges and Concerns

While the wage increase is welcomed by many, some groups have raised concerns. Recruitment agencies in Malaysia warned that a $100 increase might make it harder for employers to hire Filipino domestic workers and could increase recruitment costs.

Some Gulf countries have also expressed concerns about how this change might affect their labor markets and employment processes. These challenges highlight the need for careful planning and cooperation between the Philippines and host countries.

Transition and Compliance

The government has allowed a six-month period for employers to adjust salaries and update contracts. During this time, they are encouraged to implement the new wage voluntarily.

After six months, the DMW will check compliance. If needed, they may extend the period or require full enforcement of the $500 minimum wage.

This step ensures that Filipino domestic workers are paid fairly while giving employers time to adapt to the new policy.

Importance for Workers

This wage increase is more than just money—it shows recognition of the hard work and contributions of domestic workers. Many of these workers handle childcare, eldercare, and household duties, often under challenging conditions.

With fairer wages, Filipino domestic workers can support their families better back home, improve their living standards, and plan for the future.

Regional Impact: Gulf Countries

In the Gulf region, Filipino domestic workers are one of the largest groups of migrant workers. The new minimum wage may encourage more Filipinos to work overseas legally and safely.

In Kuwait, for example, workers with special caregiving skills earn up to 200 Kuwaiti dinars ($650). The new Philippine policy may help balance the labor supply and reduce illegal or informal recruitment practices.

Similarly, other GCC countries may adjust recruitment policies and salaries to match this new minimum, which could strengthen protections for domestic workers across the region.

Aligning with International Labor Laws

The wage adjustment follows ILO standards that protect domestic workers’ rights. These include:

• Fair pay that matches the work performed
• Safe working conditions in the employer’s home
• Social protection, including healthcare and legal support

By raising wages, the Philippines is ensuring that its workers receive fair treatment overseas, improving their safety, wellbeing, and dignity.

Benefits for Employers

While some employers may worry about higher costs, there are long-term benefits:

• More skilled workers: Higher pay attracts experienced and reliable workers
• Reduced turnover: Workers are more likely to stay longer when compensated fairly
• Compliance with international standards: Avoids legal issues and improves reputation

This can create a win-win situation where workers earn a living wage and employers receive skilled, committed help.

Future Outlook

The wage increase is a major milestone for Filipino domestic workers. The DMW plans to:

• Monitor compliance with the new wage
• Engage with Gulf countries to ensure smooth implementation
• Promote training programs for workers to enhance skills and earning potential

Over time, the government aims to further improve conditions for overseas workers

A Positive Step Forward

The $500 minimum wage is not just a number—it represents fair recognition for millions of hardworking Filipino domestic workers. By aligning pay with living costs and international standards, the Philippines is setting an example for the region.

This historic decision empowers workers, improves family support back home, and strengthens the global reputation of Filipino domestic workers as professional, skilled, and dedicated individuals.

Filipino domestic workers, Gulf, wage increase, Overseas Filipino Workers, minimum wage, Philippine Ministry of Migrant Workers