P100 Daily Minimum Wage Increase Act

TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES JUL 14 90:22 First Regular Session SENATE S. No. Introduced by Senator Jinggoy Ejercito Estrada 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 II Section 18 of the 1987 Philippine Constitution declares that, "The State affirms labor as a primary social economic force. It shall protect the rights of workers and promote their welfare." It further asserts under Article XIII Section 3 that workers have the right to just share in the fruits of production. The government is mandated to alleviate the living conditions of ordinary Filipinos through policies that provide for a rising standard of living and improved quality of life, particularly of the working class by guaranteeing their right to a decent pay. At present, minimum wage rates in the private sector are determined and fixed by Regional Tripartite Wages and Productivity Boards (RTWPBs) which were created by virtue of Republic Act No. 6727, otherwise known as the "Wage Rationalization Act" which was signed into law on June 9, 1989. The same law also provided for increases in the minimum wage rates of workers and employees in the private sector, and thus, granted the last legislated wage hike in the country. The existing socio-economic conditions of our workers and their families call for a daily pay hike to help alleviate their burden in the face of soaring prices of basic

commodities and rising cost of living. We cannot turn a blind eye on this injustice to our workers, who are considered the lifeblood of the economy. At the same time, we should carefully balance this with the financial capacity of the enterprises in the country, a great majority of which are Micro, Small and Medium Enterprises (MSMEs). In June 2025, the Senate Economic Planning Office (SEPO) prepared a Briefing Note on the Employment and Inflation Impacts of Minimum Wage Increases. Based on an estimated 4.8 million minimum wage workers nationwide, a P100.00 wage hike will result to an estimated job losses ranging from 103,000 to 258,000 while a P200.00 wage hike will result to an estimated job losses ranging from 206,000 to 517,000, depending on how sensitively employers respond to higher wages. The most impacted sectors include construction, manufacturing, and wholesale and retail trade. The SEPO briefer further elaborates the impact of wage increases as follows: "Depending on elasticity assumptions, the unemployment rate could increase by 0.2 to 1.02 percentage points. These short-term labor market impacts may compound existing challenges in labor absorption, particularly in sectors reliant on low-wage employment. Using input-output analysis, SEPO estimates that the proposed P100.00 and P200.00 minimum wage hike could result in an increase in inflation rate by 0.6 - 1.0 percentage point respectively. Low-income households are often hit hardest by rising prices, as they spend a larger proportion of their income on necessities, potentially eroding any gains from the wage increase if the resulting inflation is substantial." Despite these possible consequences, there is a need to enact a law that will increase the rates of minimum wage earners, in the hope of attaining our goal of reducing poverty incidence rate in the coming years to have a "prosperous, predominantly middle-class society where no one is poor" by 2040. Under the Philippine Development Plan, the government is targeting to reduce the poverty incidence rate to 13.2% by 2025, and to 9% by 2028." 1 Jocson, L. "PHL confident it will bring down poverty rate to 9% by 2028," 27 July 2023. BusinessWorld. https://www.bworldonline.com/top-stories/2023/07/27/536188/phl-confident-it-will-bring-down-poverty- rate-to-9-by-2028/

This measure proposes a P100.00 increase in the daily rate of all minimum wage workers in the country. It includes a provision on the correction of wage distortion to ensure that workers who are not minimum wage earners will not be disadvantageously affected by the said increase. This statutory increase, if passed into law, will also result in increased purchasing power and will stimulate economic activity, thereby contributing to national growth. It is acknowledged that even with this proposed increase, the difference between the minimum wage and the cost of living—or the family living wage-will remain glaring. But this is the most reasonable rate that can be proposed, balancing the welfare of workers and businesses. This bill was reported out by the Committee on Labor, Employment, and Human Resources Development in the 19th Congress and was approved on Third Reading in plenary. The immediate passage of this bill is recommended. SINGÇOY EBERCITO ESTRADA

': TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session 25 JUL 14 410:22 SENATE herrant 0' S. No. 458 Introduced by Senator Jinggoy Ejercito Estrada 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 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.

Sec. 2. Declaration of Policy. - It is the 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 class by ensuring the right of abor to its just share in the fruits of production, to 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 ail 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 non-agricultural, 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

2 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 5 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 9 under valid collective bargaining agreements: Provided, That such wage increase was 10 granted in anticipation of the minimum wage increase under this Act: Provided, 11 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 13 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 • 23 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 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 10 this Act: Provided, further, That any person convicted under this Act shall not be 11 entitled to the benefits provided for under the Probation Law. In case a fine and/or indemnity is decreed by the National Labor Relations 13 Commission (NLRC) against person/s who violated the provisions of this Act and 14 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, 19 movable and immovable properties may be levied to fully satisfy the imposed fines 20 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 or 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 or part hereof is held invalid or

unconstitutional, the remainder of the law or the provision or part not otherwise affected shall remain valid and subsisting.

Sec. 12. Repealing Clause. - Any law, presidential decree or issuance, executive

2 order, letter of instruction, administrative order, rule, or regulation contrary to or 3 inconsistent with the provisions of this Act are hereby repealed, modified, or amended 4 accordingly.

Sec. 13. Effectivity. - This Act shall take effect fifteen (15) days following the

completion of its publication either in the Official Gazette or in a newspaper of general 7 circulation. Approved,