The Philippines government has increased the minimum wage for overseas Filipino domestic workers to US$500, a 25% increase from its current requirement of US$400.
The minimum wage was last revised nearly two decades ago in 2006. The rationale behind the October 2025 increase is the weakening of the peso and rising national inflation, due to which “the current wage floor [...] has substantially lost its purchasing power, both locally and internationally,” according to a circular dated 07 October 2025 issued by the government.
However, within weeks of the decision, the Southeast Asian country—one of the largest source of domestic workers in the GCC—announced the increase would not apply to the region.
According to media reports - Opens in new tab in September, the Philippine Secretary of Migrant Workers Hans Leo Cacdac said ‘the wage-setting mechanism would be reviewed to strike a balance between the interests of both sides, following talks with Qatar’s Minister of Labour, Dr. Ali bin Samikh Al Marri.
The Qatari minister, seemingly on behalf of the GCC, objected to the “absence of coordination despite existing communication channels and bilateral agreements.”
Only two GCC states currently have a minimum wage for migrant workers. Qatar: QR1000 (US$275), plus QR500 (US$137) for accommodation and QR300 (US$83) for food if not provided and Kuwait: KD75 (US$245).
However, the Philippines Migrant Workers Offices—the government agency responsible for protecting and assisting Overseas Filipino Workers (OFWs) in destination countries—only approve contracts that meet the country’s US$400 minimum wage. Filipino workers earn among the highest salaries in the sector, with some of the highest employer-paid recruitment costs reaching upwards of US$5000.
Though the increase has been put on hold for the region, the content of the circular is still noteworthy.
The circular listed four implementing entities: licensed private recruitment agencies (PRAs), accredited foreign employers/principals hiring Filipino domestic workers, welfare desk officers of foreign recruitment agencies and PRAs; and Migrant Workers Offices and relevant Department of Migrant Workers.
Employers (both of new and returning workers) are given a six-month period to adjust wages. Certain incentives have been extended to those entities that are compliant, but none of it is of financial nature.
The implementing entities donot include authorities connected to destination governments, who have the final sign-off on contracts. These authorities could be at origin, like the Qatar Visa Centre, or the Ministries of Labour in the country of employment.
