250 Daily Minimum Wage Increase Act of 2025

TWENTIETH CONGRESS OF THE JUL -2 P4:10 REPUBLIC OF THE PHILIPPINES First Regular Session SENATE S. No. _ 6 INTRODUCED BY SENATOR JV EJERCITO AN ACT PROVIDING FOR A TWO HUNDRED FIFTY PESOS ACROSS THE BOARD INCREASE IN THE DAILY MINIMUM WAGE OF EMPLOYEES AND WORKERS IN THE PRIVATE SECTOR EXPLANATORY NOTE How much is the dignity of a Filipino worker? The answer is clear— it is priceless. Construction workers have built houses, yet most struggle to pay their monthly rent, if not homeless themselves. They have laid the foundation of our roads and bridges but most of them had to walk to their jobs due to the high cost of fares. Waiters serve us the food we ordered but some of them had to skip meals to save up for their own family's dinner. This is the irony of life experienced by a Filipino worker: he does not even possess the amount of money to purchase the goods his hands have produced. He is often, if not always, underpaid for the work and services he has rendered. Not because his employer deliberately does so, but for the reason that the minimum wage cannot keep up with external forces such as inflation. The recent P50 wage hike implemented in the National Capital Region by the Marcos administration is commendable and a good start towards achieving living wage. However, across the Philippines, the daily minimum wage of workers falls short

• . of their financial needs. It cannot cover their expenses for rent, electricity, transportation, health care, education for their children and perhaps, most importantly, food. The rise in fuel prices brought about by wars in oil producing countries have created a domino effect in the increase in prices of basic commodities. Consequently, the take home pay of a worker becomes smaller and its purchasing value lesser. When purchase value of salary decreases, this would mean that workers are being asked to do more than what they are being paid for. This bill seeks to bridge the gap to the decreasing purchase value of the take home pay of a worker and the rising cost of living. It provides a two hundred fifty pesos (P 250.00) across the board increase in the minimum wage of employees of the private sector. They are not handed out something that they do not deserve or not worthy of. There is no amount of money that can equal the dignity of a Filipino worker. In view of the foregoing, the passage of this measure is earnestly sought. →00= JV EJERCITO

". TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session JUL -2 P4:10 SENATE S. No. 6 INTRODUCED BY SENATOR JV EJERCITO AN ACT PROVIDING FOR A TWO HUNDRED FIFTY PESOS ACROSS THE BOARD INCREASE IN THE DAILY MINIMUM WAGE OF 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 P250 Daily Minimum

2 Wage Increase Act of 2025".

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

4 living conditions of the ordinary Filipino through policies that provide for a 5 decent and humane standard of living and improved quality of life, particularly of 6 the working class by ensuring the right of labor to its just share in the fruits 7 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 non- agricultural, shall be increased by Two hundred Fifty Pesos (P250.00) 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 17 Republic Act No. 6727, otherwise known as the "Wage Rationalization Act", 18 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 3 union, or the employer and the workers, in the absence of a union, shall negotiate 4 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 6 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 10 was granted In anticlpation 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, 17 decrees, issuances, executive orders, and any contract or agreement between workers and employers.

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

20 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- 27 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,

30 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 32 hundred thousand pesos (P100,000.00) plus moral damages for each affected

• .. 1 worker and the costs of litigation including attorney's fees, or imprisonment of not 2 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 6 president, vice president, chief executive officer, general manager, managing 7 director or partner. The employer concerned shall be ordered to pay an amount equivalent to 9 double the unpaid benefits owing to the employees: Provided, That the payment 10 of indemnity shall not absolve the employer from the criminal liability imposable 11 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

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