P150 Daily Minimum Wage Increase Act

TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session JUL -2 P4:25 RECOVEDE: SENATE S. No. _ Introduced by Senator Robinhood Padilla AN ACT PROVIDING FOR A ONE HUNDRED AND FIFTY PESOS (P150.00) MINIMUM WAGE INCREASE FOR EMPLOYEES AND WORKERS IN THE PRIVATE SECTOR EXPLANATORY NOTE If we take a closer look at the historical prices of basic goods, commodities and services like food, electricity and transportation, one thing has been consistent - they rise every single day. If prices are rising, shouldn't the wages of our workers rise too? Filipino workers who wake up before sunrise, endure long travel and work hours and make countless sacrifices just to put food on the table and provide for the basic needs of their families deserve a fair and decent wage increase - a minimum wage that could tie them up until their next payday and adequate to keep up with the cost of living. In the 19th Congress, both Houses of Congress have approved its own version of a minimum wage increase bill with the objective of balancing the concerns of employers and the needs of the workers. The said bill could have been the golden opportunity of the government to give our workers the relief that they have long been calling for. Unfortunately, we have lost that opportunity. This bill therefore seeks to continue the progress that was championed by the Senators of the 19th Congress - to raise the daily minimum wage of Filipino workers by One hundred and fifty pesos (P150.00). This representation firmly believes that

this amount is not enough for a decent living wage, however, it is seen as a step forward toward fairness and restoring the dignity of labor. This measure is for every Filipino worker who lives from paycheck to paycheck but never falters from completing the job. This is not just about giving them a wage increase, this is about justice, compassion and the value of hard work. It is for these reasons that the passage of this bill is earnestly sought. Senator

TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES ) First Regular Session JUL -2 P4:25 SENATE REC.. S. No. 12 Introduced by Senator Robinhood Padilla AN ACT PROVIDING FOR A ONE HUNDRED AND FIFTY PESOS (P150.00) MINIMUM WAGE INCREASE FOR EMPLOYEES AND WORKERS IN THE PRIVATE SECTOR Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:

Section 1. Short Title. - This Act shall be known as the "P150 Daily Minimum

Wage Increase Act".

Sec. 2. Declaration of Policy. - It is the policy of the State to alleviate the living

conditions of the ordinary Filipino though policies that provide for a decent and humane standard of living and improved quality of life, particularly of the working class by ensuring the right of labor to its just share in the fruits of production, to 7 guarantee the workers' right to a living wage, and to promote social justice through 8 the adoption of measures calculated to ensure the well-being and economic security of all members of the community.

Sec. 3. Wage Increase. - The daily rate of all minimum wage workers in the

private sector, regardless of employment status, including those in contractual and sub-contractual arrangements, whether agricultural or non-agricultural, shall be increased by One hundred and fifty pesos (P150.00) upon the effectivity of this Act. 14 Nothing in this Act shall prevent the respective Regional Tripartite Wages and 15 Productivity Boards to grant additional increases to the workers and employees on the

basis of their determination pursuant to Republic Act No. 6727, otherwise known as the "Wage Rationalization Act", as amended.

Sec. 4. Correction of Wage Distortion. - Where a wage distortion occurs as a

result of the increase in minimum wage under this Act, the employer and the union, or the employer and the workers, in the absence of a union, shall negotiate to correct the distortion in accordance with the provisions of Article 124 of Presidential Decree No. 442 or the "Labor Code of the Philippines", as amended, and other existing laws, rules and regulations.

Sec. 5. Non-Chargeability of Prior Increases. - No wage increase shall be

10 credited as compliance with the increase prescribed herein unless expressly provided under valid collective bargaining agreements: Provided, That such wage increase was 12 granted in anticipation of the minimum wage increase under this Act: Provided, 13 further, That where such increase is less than the prescribed increase under this Act, the employer shall pay the difference. Such increases shall not include anniversary wage increases, merit wage increases and those resulting from the regularization or 16 promotion of employees.

Sec. 6. Non-Diminution of Other Benefits. - Nothing in this Act shall be

construed to reduce any existing allowance and benefit of any form under existing laws, decrees, issuances, executive orders, and any contract or agreement between 20 workers and employers.

Sec. 7. Inspection by the Department of Labor and 14 Employment (DOLE). -

22 The DOLE shall conduct inspection of payroll and other financial records kept by the company or business to determine whether the workers are paid the prescribed minimum wage increase and other benefits granted by law. The said inspection may take place at any time of the day or night, whenever work is being undertaken. In unionized companies, the DOLE inspectors shall always be accompanied by the president or any responsible officer of the recognized bargaining unit or of an interested union in the conduct of the inspection. In non-unionized companies, establishments or businesses, the inspection should be carried out in the presence of 30 a workers' representative

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Sec. 8. Penalties. - Any person, corporation, trust, firm, partnership,

2 association or entity violating any provision of this Act shall be punished by a fine of not less than Fifty thousand pesos (P50,000.00) but not more than One hundred 4 thousand pesos (P100,000.00) plus moral damages for each affected worker and the 5 costs of litigation including attorney's fees, or imprisonment of not less than two (2) 6 years nor more than four (4) years, or both at the discretion of the court: Provided, 7 That if the violation is committed by a corporation, trust or firm, association or any 8 other entity, the penalty of imprisonment shall be imposed upon the entity's 9 responsible officers including, but not limited to, the president, vice president, chief 10 executive officer, general manager, managing director or partner. The employer concerned shall be ordered to pay an amount equivalent to double the unpaid benefits owing to the employees: Provided, That the payment of indemnity shall not absolve 13 the employer from the criminal liability imposable under this Act: Provided, further, 14 That any person convicted under this Act shall not be entitled to the benefits provided 15 for under the Probation Law. In case a fine and/or indemnity is decreed by the National Labor Relations 17 Commission (NLRC) against person/s who violated the provisions of this Act and 18 cannot be immediately satisfied because of the refusal to pay, or in case of the unavailability or inadequacy of funds, the bank deposits, financial interests and other personal property not capable of manual delivery in the possession or control of third parties of the owner in case of sole proprietorship or the assets of the corporation, association or any other entity, shall be garnished. If such properties are not enough, movable and immovable properties may be levied to fully satisfy the imposed fines and/or indemnities. Failure on the part of any corporation, trust or firm, partnership, association or 26 any other entity to comply with the provisions of this Act shall be a ground for non- 27 renewal of business permits.

Sec. 9. Construction in Favor of Labor. - All doubts in the implementation and

interpretation of the provisions of this Act, including its implementing rules and regulations, shall be resolved in favor of labor.

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Sec. 10. Implementing Rules and Regulations. - The Secretary of Labor and

Employment shall promulgate the necessary rules and regulations for the effective implementation of this Act.

Sec. 11. Separability Clause. - If any provision of this Act is held

unconstitutional, the remainder thereof not otherwise affected shall remain in full force and effect.

Sec. 12. Repealing Clause. - All laws, decrees, executive orders, rules and

regulations and other issuances or parts thereof which are inconsistent with the provisions of this Act are hereby repealed or modified accordingly.

Sec. 13. Effectivity Clause. - This Act shall take effect fifteen (15) days after

its publication in the Official Gazette or in at least two (2) newspapers of general 12 circulation. Approved,