P200 Daily Minimum Wage Increase Act of 2025

13P Bed? TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES JUL -8 P5:46 First Regular Session SENATE S. No. 2'73 Introduced by Senator Paolo Benigno "Bam" A. Aquino IV PROVIDING FOR A TWO HUNDRED PESOS (P200.00) DAILY MINIMUM WAGE INCREASE FOR EMPLOYEES AND WORKERS IN THE PRIVATE SECTOR EXPLANATORY NOTE Many Filipino workers do their best every day to support their families- often working long hours and making sacrifices just to get by. But even with all their effort, the rising prices of food, transportation, electricity, and other basic needs continue to make it difficult to make ends meet. According to official data, prevailing minimum wages across regions remain significantly below the estimated family living wage, forcing many working Filipinos to take on multiple jobs, incur debt, or rely on informal work arrangements just to survive. This bill seeks to provide immediate relief to minimum wage earners by mandating an across-the-board increase of Two Hundred Pesos (P200.00) in the daily minimum wage of workers in the private sector nationwide. It covers workers across all industries and occupations, regardless of employment status, including those in contractual and sub-contractual arrangements, and applies to both agricultural and non-agricultural work. At the same time, the bill recognizes the realities faced by micro, small and medium enterprises (mSMEs), which are vital to the country's economy but often operate with limited resources. To support their continued viability, the bill exempts mSMEs from the wage increase. Finally, the bill reaffirms the authority of the Regional Tripartite Wages and Productivity Boards (RTWPBs) to grant additional wage increases based on regional conditions, in accordance with Republic Act No. 6727, or the "Wage Rationalization Act," as amended. This measure is not meant to replace long-term reforms or other wage-setting mechanisms. Rather, it serves as a necessary step to help workers cope with the increasing cost of living while continuing the conversation on livable wages and decent work.

Our workers keep the economy moving, and this bill is a way of acknowledging their contribution with meaningful support. Ensuring they take home wages that are more responsive to today's realities is both fair and necessary. In view of the foregoing, the passage of this bill is earnestly sought. Ban Oquir

TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES ) First Regular Session ) JUL -8 15:46 SENATE REC S. No. 2'73 Introduced by Senator Paolo Benigno "Bam" A. Aquino IV AN ACT PROVIDING FOR A TWO HUNDRED PESOS (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

4 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 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 9 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 sub contractual arrangements, whether agricultural or non-agricultural, shall be increased by Two Hundred Pesos (P200.00) upon the effectivity of this Act:

1 Provided, That micro, small and medium enterprises (MSMEs), as defined under 2 Republic Act No. 9501 or the "Magna Carta for Micro, Small and Medium Enterprises," 3 shall be exempted from the implementation of the wage increase under this Act: 4 Provided, further, That the exemption shall cease to apply once the enterprise no 5 longer qualifies as a micro, small or medium enterprise under RA 9501, and shall be 6 subject to periodic review and renewal: 7 Provided, finally, That nothing in this Act shall prevent the respective Regional 8 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 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, 22 the employer shall pay the difference. Such increases shall not include anniversary wage increases, merit wage increases and those resulting from the regularization or 24 promotion of employees.

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

26 construed to reduce any existing allowance and benefit of any form under existing

1 laws, decrees, issuances, executive orders, and any contract or agreement between 2 workers and employers.

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

4 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 7 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 9 president or any responsible officer of the recognized bargaining unit or of the 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. The DOLE shall also strengthen its labor standard enforcement system by requiring covered employers to submit digital payroll data, in such format and frequency as may be determined by the Department, through the Online Compliance Portal or any other electronic compliance platform it may designate. The submission of electronic records shall be without prejudice to on-site inspections when warranted.

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 26 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.

1 The employer concerned shall be ordered to pay an amount equivalent to double the 2 unpaid benefits owing to the employees: Provided, That the payment of indemnity 3 shall not absolve the employer from the criminal liability imposable under this Act: 4 Provided, further, That any person convicted under this Act shall not be entitled to the 5 benefits provided for under the Probation Law. 6 In case a fine and/or indemnity is decreed by the National Labor Relations Commission 7 (NLRC) against person/s who violated the provisions of this Act and cannot be 8 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

2 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

5 following the completion of its publication in the Official Gazette or in a newspaper of 6 general circulation. Approved,