THIRTEENTH CONGRESS OF THE REPUBLIC 
3o 
I :33 
OF THE PHILIPPINES 
P 
FIRST REGULAR SESSION 
1 
S E N A T E  
S.B. NO. 
P 
Introduced by Senator LUISA “LOI” P. EJERCITO ESTRADA 
EXPLANATORY NOTE 
Under Article 11, Section 18 of the Constitution, “The State affirms 
labor as a primary social economic force. It shall protect the rights of 
workers and promote their welfare.” It is also provided in Article 19 of the 
New Civil Code that, “Every person must in the exercise of his rights and 
in the performance of his duties, act with justice, give everyone his due, 
and observe honesty and good faith”. In view of the above-stated 
provisions, it is a well-settled policy of the State to afford protection to 
labor and promote the rights of workers, which for the purpose of this 
bill, refers to a just wage. 
A just wage includes the intrinsic right to a full wage in accordance 
with contract-stipulations between employer and employee, the extent of 
service rendered by the latter, the criterion of credentials, competence or 
ability, and deductions as provided by law. However, it is now becoming 
a prevalent, if not a rampant practice, whether in public or private 
establishments, for salary-disbursing officers to lend money before the 
actual payment of salary becomes due, most especially to workers who, 
in dire need or in cases of emergency, are forced to borrow from the 
former to be paid when the salary falls due, usually at usurious 
interests. 
Given this scenario, workers fall prey to the 
greed of 
disbursing officers, the effect of which is detrimental to the well-being of 
the workers. Hence, the need to curb this practice. This bill is designed 
to redness such wrong. 
In consideration of the foregoing, support for this bill is earnestly 
requested. 
LUISA “LOI” POEJERCITO ESTRADA 
Senator 


r-. 
~ 
, 
THIRTEENTH CONGRESS OF TI 
OF THE PHILIPPINES 
FIRST REGULAR SESSION 
I 
E REPUBbIC 
S E N A T E  
S.B. NO. I 
Introduced by Senator LUISA “LOI” P. EJERCITO ESTRADA 
AN ACT 
PENALIZING THE ACT OF MONEYLENDING WITH INTEREST BY 
PROVIDING PENALTIES FOR VIOLATIONS THEREFOR, AND FOR 
OTHER PURPOSES 
SALARY-DISBURSING OFFICERS IN PUBLIC OR PRIVATE ENTITIES, 
Be it enacted by the Senate and the House of Representdrves of the 
Philippines in Congress assembled: 
Section 1. Declaration of Policy. - It is the policy of the State to 
afford protection to labor and to protect the rights of workers. Pursuant 
to this policy, the right of the worker to receive his full wage is hereby 
affirmed and protected. 
Section 2. 
Definition of Terms. - As defied in this Act: - 
a) 
Full-Wage - means the net take-home pay of the worker after 
the deduction of such authorized by law. 
Salary-Disbursing-OMcer - refers to a treasurer, paymaster 
or any other person who has direct or indirect control of the 
salary of an employee. 
b) 


Section 3. Prohibited Acts, Penalties. - The following acts are 
prohibited: 
a) 
any money lending activity made by the salary-disbursing 
officer with interest or any other consideration; 
any deduction made by the salary-disbursing officer from the 
salary of an employee of an interest due on a loan; 
the withholding of salary by the salary-disbursing officer 
because of a loan; and 
the "buying" of salary or giving or advancing to the employee 
an amount less than the full wage. 
b) 
c) 
d) 
Any salary-disbursing officer who shall commit any of the 
prohibited acts mentioned in this Section shall suffer a fine of thrice the 
amount of the salary due the employee and imprisonment for not less 
than six (6) months. 
Any other person who commits similar acts in anyway whatsoever 
or who acts in behalf of the salary-disbursing officer shall suffer the 
same fine and penalty as provided in the preceding paragraph. 
Section 4. Separability Clause. - If any provision, or part hereof, 
is held invalid or unconstitutional, the remainder of the law or the 
provision not otherwise affected shall remain valid and subsisting. 


Section 5. RepeaUng Clause. - Any law, presidential decree or 
issuance, executive order, letter of instruction, administrative order, rule 
or regulation contrary to or inconsistent with, the provisions of this Act is 
hereby repealed, modified or amended accordingly. 
Section 6. Effectivity Clause. - This Act shall take effect fifteen 
(15) days after its publication in at least two (2) newspapers of general 
circulation. 
Approved, 
GVL/tmd/SB 965FEBl bills/cos