NINETEENTH CONGRESS OF THE REPUBLIC 
)
OF THE PHILIPPINES 
)
First Regular Session 
)
•22 JUL13 A10:04
S. No.
SENATE
458
RHCEIVcDB:;
Introduced by Senator JINGGOY E3ERCITO ESTRADA
AN ACT
AMENDING ARTICLE 123 OF PRESIDENTIAL DECREE NO. 442, AS 
AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE 
PHILIPPINES, BY REQUIRING THE REGIONAL BOARD TO ISSUE A WAGE 
ORDER EVERY YEAR OR AN EXPLANATION FOR NOT ISSUING SUCH WAGE 
ORDER
EXPLANATORY NOTE
Presidential Decree No. 442, otherwise known as The Labor Code of the 
Philippines was amended by Republic Act No. 6727 to create the National Wages 
and Productivity Commission and the Regional Tripartite Wages and Productivity 
Boards, allowing for the determination and fixing of minimum wage rates applicable 
to the various regions, provinces or industries therein. Article 123 of the Labor Code 
provides that, whenever conditions In the region so warrant, the Regional Board 
shall investigate and study all pertinent facts; and based on the standards and 
criteria herein prescribed, shall proceed to determine whether a Wage Order should 
be issued.
However, the labor sector has often criticized the Regional Boards for their 
delayed reaction to the conditions of their respective regions, and their slow action 
on petitions for minimum wage increase, so much so that the labor sector is now 
demanding that Congress pass a legislation that will revert back to the old system of 
legislated wage increases.


This bill seeks to require the Regional Boards to issue Wage Orders annually, 
preferably on or before May 1 (Labor Day) of each year, or to Issue a detailed 
explanation why such Wage Order cannot be issued. It Is expected that this measure 
shall make the Regional Boards more transparent and accountable to the sectors 
they serve.
Hence, the immediate passage of this bill is earnestly solicited.
JL
NGGOY EJERCITO ESTRADA


NINETEENTH CONGRESS OF THE REPUBLIC 
)
OF THE PHILIPPINES 
)
First Regular Session 
)
of tliC
72 JUL 13 AlO -04
S. No.
SENATE
458
received
Introduced by SENATOR JINGGOY EJERCITO ESTRADA
AN ACT
AMENDING ARTICLE 123 OF PRESIDENTIAL DECREE NO. 442f AS 
AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE 
PHILIPPINES, BY REQUIRING THE REGIONAL BOARD TO ISSUE A WAGE 
ORDER EVERY YEAR OR AN EXPLANATION FOR NOT ISSUING SUCH WAGE 
ORDER
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
1 
Section 1. Article 123 of Presidential Decree No. 442, as amended, otherwise
2 
known as the Labor Code of the Philippines, is hereby amended to read as follows:
3 
"ART. 123. Wage Order. - Whenever conditions in the
4 
region so warrant, AND ONCE EVERY YEAR STARTING
5 
MAY 1, the Regional Board shall Investigate and study all
6 
pertinent facts; and based on the standards and criteria
7 
herein prescribed, shall proceed to determine whether a
8 
Wage Order should be Issued. Any such Wage Order shall
9 
take effect after fifteen (15) days from Its complete
10 
publication in at least one (1) newspaper of general
11 
circulation in the region. THE REGIONAL BOARD SHALL
12 
ISSUE SUCH WAGE ORDER ON OR BEFORE MAY 1 OF
13 
EVERY YEAR.
14 
"IN LIEU OF A WAGE ORDER, THE REGIONAL
15 
BOARD, ON OR BEFORE MAY I OF EVERY YEAR,
16 
SHALL PUBLISH IN AT LEAST ONE (1) NEWSPAPER
3


1 
OF GENERAL CIRCULATION IN THE REGION ITS
2 
DETAILED EXPLANATION FOR NOT ISSUING A WAGE
3 
ORDER.
4 
"X X X."
5 
Sec. 2. Separability Clause. - If any provision or part hereof is held invalid or
6 
unconstitutional, the remainder of the law or the provision or part not otherwise
7 
affected shall remain valid and subsisting.
8 
Sec. 3. Repealing Clause. - Any law, presidential decree or Issuance,
9 
executive order, letter of instruction, administrative order, rule, or regulation
10 
contrary to or Inconsistent with the provisions of this Act are hereby repealed,
11 
modified, or amended accordingly.
12 
Sec. 4. Effectivity. - This Act shall take effect fifteen (15) days after its
13 
publication In the Official Gazette or in a newspaper of general circulation.
Approved,