Republic of the Philippines

HOUSE OF REPRESENTATIVES RECEIVED
Quezon City, Metro Manila IZ pate 3% JUN 205
TIME
TWENTIETH CONGRESS
1” Regular Session

House Bill No, 195

Introduced by Representatives EDVIC G. YAP

EXPLANATORY NOTE

The Philippine Constitution upholds the right of every worker to a living wage and
mandates the State to promote social justice and protect labor. However, despite this
constitutional guarantee, millions of Filipino workers continue to receive wages that
fall short of meeting their basic needs. The Department of Labor and Employment
reports the minimum wage in the National Capital Region stands at 608.00 -
645.00 per day, while rates in other regions remain significantly lower, with some
provinces reporting daily minimum wages as low as ®350. These wages are far from
the estimated daily living wage of 1,200.00 to 1,500.00 for a family of five, as
reported by IBON Foundation. The gap between actual wages and the cost of living

continues to widen, leaving many working Filipinos struggling to survive.

This bill seeks to address that reality by mandating a 200.00 daily wage increase for
all minimum wage workers in the private sector, regardless of employment status,
industry, or region. This includes workers under contractual and sub-contractual
arrangements, as well as those in the agricultural and informal sectors. To ensure
that small enterprises are not unduly burdened, the bill provides for incentives
through the Department of Labor and Employment (DOLE), to help them comply
with the wage hike. It also respects existing exemptions under laws such as the
Barangay Micro Business Enterprises (BMBEs) Act and the Wage Rationalization
Act, recognizing that certain small businesses and disaster-affected enterprises may
need additional consideration. Moreover, the bill affirms that no existing benefit,
such as transportation or meal allowances, shall be diminished or substituted in lieu

W



of the wage increase. This ensures that the 200.00 increase is an addition, not a

replacement to workers’ current earnings and entitlements.

To promote compliance, the proposed law imposes strict penalties on employers
who fail to implement the mandated increase. Violators may be fined between
100,000.00 to 500,000.00 or imprisoned for up to four years. Furthermore,
employers found guilty shall pay double the amount of unpaid benefits to their
affected workers. These enforcement provisions are designed to protect employees
and ensure accountability among employers, especially in sectors where labor

violations are common.

This bill is a necessary and urgent step toward economic justice. It aims to lift
millions of Filipino workers closer to a dignified standard of living and
acknowledges the indispensable role they play in driving national productivity and
growth. A 200.00 wage hike may not close the wage-living cost gap completely, but
it is a critical start, a concrete measure that affirms the State's duty to uplift those
who carry the heaviest burdens of our economy. This law is a long-overdue
recognition that every worker deserves fair pay and a decent life for themselves and
their families.

In view of the foregoing, approval ofhis bill is earnestly sought.

HON. EDMIC G. YAP


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

TWENTIETH CONGRESS
1* Regular Session

House Bill No. 195

Introduced by Representatives EDVIC G. YAP

AN ACT
PROVIDING FOR A TWO HUNDRED PESOS (P200.00) DAILY WAGE
INCREASE FOR MINIMUM WAGE 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 “Wage Hike For
‘Minimum Wage Workers Act.”

SEC. 2. Declaration of Policy. - It is a policy of the State to alleviate the living
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 labor to its just share in the fruits 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. Minimum Wage Increase. - Upon the effectivity of this Act, 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 nonagricultural, shall be increased by Two hundred pesos (P200.00)
per day.

Nothing in this Act shall prevent the respective Regional Tripartite Wages and
Productivity Boards from granting additional increases to the workers and
employees, as may be determined in accordance with their mandate under Republic
Act No. 6727, otherwise known as the “Wage Rationalization Act”, as amended.

SEC. 4. Incentives to Small Enterprises. - To assist in their compliance with
the wage increase, small enterprises may avail of incentives from the Department of
Labor and Employment (DOLE), subject to the implementing rules and regulations
of this Act.


SEC. 5. 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. 6. Existing Exemptions. - As provided by Republic Act No. 9178, also
known as the “Barangay Micro Business Enterprises (BMBE’s) Act of 2002,” the
BMBEs shall be exempt from the coverage of the Minimum Wage Law. Further, as
provided by Republic Act No. 6727, also known as the “Wage Rationalization Act,”
and relevant rules of the National Wages and Productivity Commission, the
following, establishments may apply for exemption from compliance with the
minimum wage increase as provided by this Act: (a) retail or service establishments
regularly employing not more than’ ten (10) workers; and (b) establishments
adversely affected by natural calamities or human-induced disasters.

SEC. 7. 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 One hundred thousand pesos (P100,000.00) nor more than Five
hundred thousand pesos (P500,000.00) or imprisonment of not less than two years
nor more than four 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 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 this Act: Provided, further, That any person convicted under this Act shall not
be entitled to the benefits provided for under the Probation Law.

SEC. 8. Implementing Rules and Regulations. - Within sixty (60) days from
the effectivity of this Act, the DOLE shall, in coordination with other relevant
government agencies, promulgate the necessary rules and regulations for the
effective implementation of this Act.

SEC. 9. Separability Clause. - If any provision or part of this Act is declared
invalid or unconstitutional, the remaining provisions or parts of this act shall remain
in full force and effect, and the application of such provision to other persons or
circumstances shall not be affected.

SEC. 10. Repealing Clause. - All laws, orders, issuances, rules, and
regulations or parts thereof inconsistent with the provisions of this Act are hereby
repealed, amended, or modified accordingly.

SEC. 11. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.


Approved,