Philippines raises minimum pay for Filipino overseas domestic workers to $500

Starting soon, Filipino overseas domestic workers will no longer be earning less than $500 a month. The Department of Migrant Workers (DMW) confirmed the long-awaited change on Friday that it is raising the minimum pay from $400.

Keeping with the directive of President Ferdinand R. Marcos, Jr. to uplift the dignity and well-being of OFWs, the DMW made the formal adoption of the reform programs for Filipino domestic workers to further uphold their rights, dignity, and welfare.

The reforms concerning higher wages, medical checkups, the "Know Your Employer" protocol, and the digital welfare monitoring system will undergo a 60-day transition period.

“The increase shall be integrated into the employment contract,” Migrant Workers Secretary Hans Leo Cacdac told reporters, explaining that overseas labour offices are already being tasked to negotiate with host governments and private employers.

Not everyone will fall under the same rate. Cacdac clarified that some countries and employers may still push for different wage floors, depending on local laws and bargaining. Newly hired domestic workers, as well as those coming back from vacation or re-employment, $500 will be the official base pay.

The pay bump is part of a broader eight-part reform plan rolled out by the DMW.

“There are eight components for these domestic workers reforms, which reinforce our commitment to decent work, ethical recruitment, and strengthened welfare mechanisms for Filipino domestic workers deployed abroad,” Migrant Workers Secretary Hans Leo J. Cacdac said.

The domestic workers reform package include:

* Increase in the minimum monthly wage of domestic workers— from USD 400 to at least USD 500, for recognition of domestic work as work of equal value deserving of fair compensation;

* Annual Medical Check-ups and Hospitalization/Treatment for domestic workers, which shall be initially implemented on a voluntary basis and free of charge;

* Implementation of Mandatory “Know Your Employer” (KYE) Protocol to Ensure Transparency and Informed Consent between the domestic workers and employers through mandatory video conferencing before their contract finalization;

* Implementation of the “Kumusta Kabayan?” Digital Welfare Monitoring System for direct welfare check on the conditions of OFWs;

* Reskilling, Upskilling, and Career Mobility Program for continuous enhancement of the workers employability and opportunities;

* Stricter Standards for Recruitment Agency Accommodation Facilities;

* Whitelisting Policy for Recruitment Agencies for proven compliance and ethical practices of deployment of workers; and

* Continuous rights-based approach through Legal and Other Forms of Assistance Under the DMW AKSYON Fund.

Behind the reforms is a reality often overlooked: domestic workers make up roughly 20 to 30 percent of the Philippines’ annual overseas labour deployment. The government, under pressure from both advocates and recent controversies, is trying to show it can protect some of its most vulnerable workers.

There are also hints of more to come. The DMW is studying higher wage standards for those who upskill, such as domestic workers who later train as caregivers. “What I’m trying to say is the $500 may be increased further when a domestic worker improves his or her skill set,” Cacdac said.

The reform package is being described by the department as an attempt to secure 'decent work and ethical recruitment,' though labour groups are likely to watch closely if implementation keeps pace with promises. What’s clear is that the $500 mark sets a new baseline for Filipino overseas domestic workers abroad, and raises expectations for what comes next.