P300.00 Daily Minimum Wage Increase Act of 2025

Senate Ultice of the Errary TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES First Regular Session 25 AUG 27 P12:34 RECEIVED BY: SENATE S. No. 1269 Introduced by Senator Raffy T. Tulfo AN ACT PROVIDING FOR A THREE HUNDRED PERSOS (P300.00) DAILY MINIMUM WAGE INCREASE FOR EMPLOYEES AND WORKERS IN THE PRIVATE SECTOR The right of workers to a living wage is enshrined in the 1987 constitution, which mandates the state to afford full protection to labor and to promote social justice in all phases of national development. However, the present statutory wage, which ranges between P350 and P645 depending on the region, has long fallen short of meeting the basic needs of the average Filipino household. The sharp and continuous increase in the prices of food, utilities, housing, education, and transportation has eroded the real value of wages, leaving many workers and their families unable to cope with the rising cost of living. Senate Bill No. 209 seeks to address this urgent concern mandating a uniform P300 increase in the daily wage for all workers in the private sector regardless of whether they are employed on a regular, contractual, sub contractual, agricultural, or non- agricultural basis. This proposed increase is intended to provide immediate relief and restore dignity to the country's labor force, whose contribution to the economy remains indispensable yet inadequately compensated. This measure therefor emphasizes that existing or previous wages cannot be used to offset the mandated increase. It also provides mechanisms to correct wage distortions

This measure therefor emphasizes that existing or previous wages cannot be used to offset the mandated increase. It also provides mechanisms to correct wage distortions that may result from the implementation of this law, ensuring that the rights and benefits of workers are preserved. To guarantee compliance, the Department of Labor and Employment (DOLE) is now authorized to conduct labor inspections at any time of the day or night, in coordination with worker representatives of trade unions. Violations of the mandated wage increase are subject to penalties, including fines, imprisonment, and the payment of damages and litigation costs. In the case of corporate employers, liability shall extend to responsible officers of the company. In line with the constitutional directive to resolve all doubts in favor of labor, this bill affirms the principle that workers must receive fair and adequate compensation for their labor. By providing a significant increase in the daily minimum wage, this measure seeks to uplift the living conditions of Filipino workers and their families while reinforcing social justice and equity in the workplace. In view of the foregoing, the immediate passage of this bill is earnestly sought. RAFFY T. TULFO

Senate eat Office of this ecetary TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES ) First Regular Session ) 25 AUG 27 P12:34 RECEIVED BY: SENATE S. No. 1269 Introduced by Senator Raffy T. Tulfo AN ACT PROVIDING FOR A THREE HUNDRED PERSOS (P300.00) DAILY MINIMUM WAGE INCREASE FOR EMPLOYEES AND WORKERS IN THE PRIVATE SECTOR 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 "P300 Daily Minimum

Wage Increase Act of 2025"

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

conditions of the ordinary Filipino through 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 guarantee the workers' right to a living wage, and to promote social justice through the adoption of measures calculated to ensure the well-being and economic security of all the members of the community.

Sec. 3. Wage Increase. -The daily rate of all 3 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 three hundred pesos (P300.00) upon the effectivity of this Act. Nothing in this Act shall prevent the respective Regional Tripartite Wages 9 and 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 credited

as compliance with the increase prescribed herein unless expressly provided under valid collective bargaining agreements: Provided, That such wage increase was granted in anticipation of the minimum wage increase under this Act: Provided, 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 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 workers and employers.

Sec. 7. Inspection by the Department of Labor and Employment (DOLE). - 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 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 a workers' representative.

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

30 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 thousand pesos (P100,000.00) plus moral damages for each affected worker and the costs of litigation including attorney's fees, or imprisonment of not less than two (2) years nor more than four (4) years, or both at the discretion of the court: Provided, That if the violation is committed by a corporation, trust or firm, association or any other entity, the penalty of imprisonment shall be imposed upon the entity's responsible officers including, but not limited to, the president, vice president, chief 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 the employer from the criminal liability imposable under this Act: Provided, further. That any person convicted under this Act shall not be entitled to the benefits provided for under the Probation Law. In case a fine and/or indemnity is decreed by the National Labor Relations Commission (NLRC) against person/s who violated the provisions of this Act and 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 any other entity to comply with the provisions of this Act shall be a ground for non- 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.

Sec. 10. Implementing Ruies 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 this Act are hereby repealed, amended or modified accordingly.

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

following the completion of its publication either in the Official Gazette or in a newspaper of general circulation. Approved,