sarnate Difite of the Secretary TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session 25 AUG 20 P5:39 SENATE RECEIVED BY: S. No. 1244 Introduced by Senator Raffy T. Tulfo AN ACT ESTABLISHING THE STANDARDS FOR A LIVING WAGE, AMENDING FOR THE PURPOSE PRESIDENTIAL DECREE NO. 442, OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES, AS AMENDED EXPLANATORY NOTE The labor force population in the Philippines is equivalent to 52.42 million Filipinos (2020 Census of Population and Housing)'. As of July 2025, the average daily nominal minimum wage rate in the Philippines is 481 pesos while the family living wage for a family of five is 1,218 pesos leading to a wage gap of 737 pesos, Based on a study conducted by the IBON Foundation.2 It is provided in the 1987 Constitution that all workers shall be entitled to a living wage (Article XIII. Section 3) and that the State shall promote a just and dynamic social order that will ensure the prosperity and independence of the nation and free the people from poverty through policies that provide adequate social services, promote full employment, a rising standard of living, and an improved quality of life for all. The International Labour Organization (ILO) defines living wage as " the wage level that is necessary to afford a decent standard of living for workers and their families, taking into account the country circumstances and calculated for the work performed ' https://psa.gov.ph/content/household-population-number-households-and-average-household-size- philippines-2020-census 2 https://www.ibon.org/flw-regl-2507/
during the normal hours of work. " The standard for a living wage should be in line with definition provided by the ILO. This ensures that all factors that influence an average Filipino's daily expenses is covered and is enough to provide the basic necessities for his or her family. This measure aims to revise Article 124 of Presidential Decree No. 442, also known as the Labor Code of the Philippines, to establish the living wage as the new standard for setting regional minimum wages. It promotes a data-driven and transparent approach to wage-setting, ensuring that families receive adequate support to meet their fundamental needs— including sufficient food, decent housing, education, healthcare, and meaningful social participation. In view of the foregoing, immediate approval of this measure is earnestly sought. RAFFY T. TULFO 3 https://www.ilo.org/what-living-wage
Senate Office of the Secretary TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session AUG 20 P5:39 SENATE RECEIVED BY: S. No. 1244 Introduced by Senator Raffy T. Tulfo AN ACT ESTABLISHING THE STANDARDS FOR A LIVING WAGE, AMENDING FOR THE PURPOSE PRESIDENTIAL DECREE NO. 442, OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES, AS AMENDED Be it enacted by the Senate and House of Representatives of the Philippines in Congress Assembled:
Section 1. Short Title. - This Act shall be known as the "Living Wage Act".
Sec. 2. Article 124 of Presidential Decree No. 442, as amended and renumbered,
is hereby amended to read as follows; "ART. 124. Standards/Criteria for Minimum Wage Fixing. - The regional minimum wages to be established by the Regional Board shall [be as nearly adequate as is economically feasible to maintain the minimum standards of living necessary for the health, efficiency and general wellbeing of the employees within the framework of the national economic and social development program] MEET THE LIVING WAGE THAT IS NECESSARY TO AFFORD A DECENT STANDARD OF LIVING FOR WORKERS AND THEIR FAMILIES. In the determination of such regional minimum wages, the Regional Board shall, among other relevant factors, consider the following: (a) [The demand for living wages] ESTIMATION OF THE NEEDS OF WORKERS AND THEIR FAMILIES, INCLUDING BUT NOT LIMITED TO FOOD, CLOTHING, SHELTER, HEALTHCARE, EDUCATION, CONDUCTED THROUGH TRANSPARENT AND
EVIDENCE-BASED METHODOLOGIES IN CONSULTATION WITH TRIPARTITE INDUSTRIAL PEACE COUNCILS (TIPCS); (b) Wage adjustment vis-a-vis the consumer price index; (c) [The] CHANGES IN the cost of living and [changes or increases therein] PATTERNS OF CONSUMPTION; ffe) The needs of workers and their families; J (D) The need to induce industries to invest in the countryside; (E) Improvements in standards of living; (F) The prevailing wage levels; (G) [fair return of the capital invested and e] Capacity to pay of employers; (H) Effects on employment generation and family income; and (I) The equitable distribution of income and wealth along the imperatives of economic and social development. xxx "
Sec. 3. Implementing Rules and Regulations. - Within ninety (90) days from the
effectivity of this Act, the Department of Labor and Employment, in coordination with the Tripartite Industrial Peace Councils and other relevant stakeholders, shall promulgate the rules and regulations for the effective implementation of this Act
Sec. 4. Separability Clause. - If any portion or provision of this Act is declared
unconstitutional, the remainder of this Act or any provision not affected thereby shall remain in force and effect.
Sec. 5. Repealing Clause. - Any law, presidential decree or issuance, executive order,
letter of instruction, rule or regulation inconsistent with the provisions of this Act is hereby repealed or modified accordingly.
Sec. 6. Effectivity. - This Act shall take effect after fifteen (15) days following its
complete publication in the Official Gazette or a newspaper of general circulation. Approved,