Domestic Workers' Minimum Wage Proposal of $500 Is Not Compulsory, According to DMW
The Department of Migrant Workers (DMW) has clarified that the US$500 minimum wage for Filipino domestic workers, announced last month, is not mandatory and will be implemented on a voluntary basis.
In a recent statement, Migrant Workers Secretary Hans Leo Cacdac explained that while the new minimum wage will be integrated into all employment contracts processed by the DMW, there will be no penalties for foreign employers who choose not to give US$500 to their domestic workers.
Cacdac emphasized that their approach will be positive, encouraging recruitment agencies and employers to provide wage increases to domestic workers. He mentioned that providing an increase to a domestic worker's salary could lead to incentives from the DMW, such as faster processes and other forms of incentives.
The guidelines for the implementation of the US$500 minimum wage are expected to be issued sometime in the second or third week of October. Cacdac also stated that the implementation cannot be implemented until the second or third week of October.
It is important to note that the US$400 minimum wage for domestic workers was set under the 2006 HSW Policy Reform Package of the then Philippine Overseas Employment Administration (POEA). The new minimum wage represents a significant increase, but it will not be mandatory.
The issuance of the new guidelines reportedly disappointed some countries, including the Kingdom of Saudi Arabia (KSA), since it was issued "without prior coordination or consultation." However, the DMW has not released any information about which countries opposed the increase in the minimum wage or why there was no penalty implemented in September 2025 for foreign employers who did not comply with the minimum wage.
In conclusion, the DMW will not penalize an employer for providing less than US$500 to their domestic workers. Instead, they will encourage and incentivize employers to provide the new minimum wage of US$500. The guidelines for the implementation of the wage increase are expected to be issued next month.
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