TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session JUL -7 P12 :01 SENATE S.B. No. _ INTRODUCED BY SENATOR RISA HONTIVEROS AN ACT PROVIDING FOR A TWO HUNDRED PERSOS (P200.00) DAILY MINIMUM WAGE INCREASE FOR EMPLOYEES AND WORKERS IN THE PRIVATE SECTOR EXPLANATORY NOTE In a nation where millions of workers toil daily only to bring home wages insufficient for basic survival, the urgency of increasing the daily minimum wage cannot be overstated. It is not solely a matter of labor policy, more so, it is a question of justice, equity, and human dignity. Ensuring that workers are paid fairly is essential to addressing deep-rooted economic disparities and fulfilling the constitutional promise of a more just and humane society. As stated in Article XIII, Section 1 of the 1987 Constitution, "The Congress shall give the highest priority to the enactment of measures that protect and enhance the right of all the people to human dignity, reduce social, economic, and political inequalities, and remove cultural inequities by equitably diffusing wealth and political power for the common good." In 2024, the estimated daily living wage for a family of five in the National Capital Region (NCR) is approximately P1,205.' In contrast, the prevailing minimum wage in NCR stands at P645 per day for non-agriculture sectors and P608 for agriculture, service or retail, and manufacturing sectors. In regions outside NCR, minimum wages are even lower-ranging between P350 and P450, depending on the area. This wide gap means that millions of workers across the country earn far below what is necessary to meet essential needs such as food, shelter, transportation, and healthcare. In 2023, the Philippine Statistics Authority (PSA) reported that over 17.54 million Filipinos were considered poor-highlighting the urgent need to address income inadequacy.? ' IBON Foundation. NCR Family Living Wage, as of October 2024. 2 Philippine Statistics Authority. Percentage of Filipino Families Classified as Poor Declined to 10.9 percent in 2023.
This bill proposes to increase the daily rate of minimum wage workers in the private sector, regardless of employment status, including those in contractual and subcontractual arrangements, whether agricultural or non- agricultural, by two hundred (P200) pesos. Increasing the minimum wage leads to more food on the table, money to buy school supplies for the children, and transportation fare to get to work. This bill is for the workers who continue to struggle with the high cost of goods, transportation, and services. In view of the forgoing, the passage of this bill is earnestly sought. RISA HONTIVEROS Senator
TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session JUL -7 P12:01 SENATE 02.00 S.B. No. _ INTRODUCED BY SENATOR RISA HONTIVEROS AN ACT PROVIDING FOR A TWO HUNDRED PERSOS (P200.00) 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 "P200 Daily Minimum
2 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 6 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 subcontractual arrangements, whether agricultural or non- agricultural, shall be increased by two hundred pesos (P200.00) 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 2 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 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 6 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 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 of general circulation. Approved,