P100 Daily Minimum Wage Increase Act of 2025

TWENTIETH CONGRESS OF THE 25 JUL -7 A10:05 REPUBLIC OF THE PHILIPPINES First Regular Session REC SENATE S. No. 175 Introduced by Senator Christopher Lawrence "Bong" T. GO AN ACT PROVIDING FOR A ONE HUNDRED PESOS (P100.00) DAILY MINIMUM WAGE INCREASE FOR EMPLOYEES AND WORKERS IN THE PRIVATE SECTOR EXPLANATORY NOTE Article XIII, Section 3 of the 1987 Philippine Constitution declares: "The State shall afford full protection to labor, local and overseas, organized and unorganized…. They shall be entitled to security of tenure, humane conditions of work, and a living wage." This constitutional provision clearly mandates the State to ensure that workers are afforded a living wage-one that is not only sufficient for subsistence, but also consistent with human dignity and decency. Despite this constitutional mandate, low wages remain a pressing issue in the Philippines, particularly in the face of steadily rising living costs. Despite periodic wage adjustments, a large segment of the workforce continues to earn income that falls short of meeting their most basic needs. In Metro Manila, the current daily minimum wage stands at P610, which may increase to P645 when allowances are included. While wage rates vary across regions and sectors to reflect local economic conditions and cost of living, these figures are still significantly below the estimated poverty threshold. Compounding the problem is the persistent rise in inflation, which continues to erode the real value of wages. In 2024, year-to-date inflation was recorded at 3.2 percent, with even higher rates observed in previous years- driven largely by increases in the prices of

food, transportation, fuel, and housing. As a result, the purchasing power of workers has steadily declined, making essential goods and services increasingly unaffordable for low- income earners. This stark disparity underscores the harsh reality faced by many minimum wage earners who, despite full-time employment, remain classified as poor due to the insufficiency of their wages to support a decent and dignified standard of living. This bill seeks to immediately address this disparity through a P100.00 across-the- board daily wage increase for all minimum wage earners in the private sector, regardless of employment status, including those in contractual and subcontractual arrangements, whether agricultural or nonagricultural, nationwide. While structural wage reform and productivity-based mechanisms remain necessary in the long term, an urgent and substantial wage adjustment is imperative to shield workers from worsening economic hardships. This legislative measure represents more than just an economic intervention-it is a reaffirmation of the State's duty to uphold the rights and dignity of labor as enshrined in the Constitution. By mandating such wage increase, the government takes a decisive step toward alleviating the persistent struggles of Filipino workers, narrowing the gap between minimum wage and the living wage, and promoting equitable growth. In view of the foregoing, the immediate passage of this measure is earnestly sought.

TWENTIETH CONGRESS OF THE JUL -7 A10:05 REPUBLIC OF THE PHILIPPINES First Regular Session SENATE RES S. No. 175 Introduced by Senator Christopher Lawrence "Bong" T. Go AN ACT PROVIDING FOR A ONE HUNDRED PESOS (P100.00) DAILY 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 "P100 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 minimum wage workers in the private

sector, regardless of employment status, including those in contractual and subcontractual arrangements, whether agricultural or nonagricultural, shall be increased by One hundred pesos (P100.00) upon the effectivity of this Act. Nothing in this Act shall prevent the respective Regional Tripartite Wages 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 9 or the "Labor Code of the Philippines", as amended, and other existing laws, rules and 10 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

1 officer of the recognized bargaining unit or of interested union in the conduct of the 2 inspection. In nonunionized 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 or

6 entity violating any provision of this Act shall be punished by a fine of not less than Fifty 7 thousand pesos (P50,000.00) but not more than One hundred thousand pesos 8 (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 17 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 7 regulations, shall be resolved in favor of labor.

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 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 22 of general circulation. Approved,