For a family of five to live decently in the National Capital Region (NCR), they need to receive a wage of P1,220 per day or P26,545 per month, according to a think tank.

The major bulk of a family of five's monthly needs goes to food expenses (P13,888), house rent or rental value (P4,716), water, electricity, and gas (P2,751), miscellaneous goods and services (P1,807), and transportation (P1,503).

Since July 2024, the NCR minimum wage has been at P645 daily or about P14,190 per month.

In June, the NCR Regional Tripartite Wages and Productivity Board announced that it will bring the daily minimum wage rate in NCR to P695.

Under the new rate, minimum wage workers will have a monthly take-home pay of about P15,247 for a five-day workweek.

However, for IBON Foundation Executive Director Sonny Africa, the measly hike will not give much-needed relief to millions of struggling Filipino workers.

"It does little to make up for the burdensome impact inflation has on chronically insufficient nominal wages in the region, and barely helps Filipino families meet their basic needs," Africa said.

"The impending P50 wage hike is far below what's needed to reach the family living wage in the region," he added.

It is P522 short of the P1,220 required for a family of five's basic needs.

Africa also explained that the new nominal wage of ₱695 will translate to a real value of only P560.72, using the May 2025 NCR Consumer Price Index.

"This means that the latest wage hike only increases the real value of the minimum wage by P40," he added.

The new NCR minimum wage takes effect on 18 July.