SEVENTEENTH CONGRESS OF THE
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REPUBLIC OF THE PHILIPPINES
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Third Regular Session
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‘19 rFB-4 P6:38
S. B. No.
SENATE
2205
FiLt
INTRODUCED BY SENATOR JOSEPH VICTOR G. EJERCITO
AN ACT
AMENDING PRESIDENTIAL DECREE NO. 442, AS AMENDED, 
OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILPPINES, AND 
PROVIDING FOR THE RATIONALIZATION OF WAGE LEVELS ON A 
NATIONAL OF INDUSTRIAL BASIS
EXPLANATORY NOTE
Higher wages are among the most fundamental dimensions for inclusive 
growth aside from job creation. While country's economic growth is one of the 
top and fastest-rising in the Southeast Asian region, the Philippines has not 
performed well in terms of inclusive growth.
According to a World Bank report in 2018, "despite the generally good 
economic performance, poverty remains high and the pace of poverty reduction 
has been slow" in the Philippines. This makes a review of the wage structure 
not only urgent but imperative.
The 1987 Philippine Constitution in Article XIII, Section 3 thereof 
guarantees full protection to labor and warrants that workers shall be entitle to 
security of tenure, humane conditions of work, and a living wage. However, 
reality reneges against the policy declaration in the Constitution.


Republic Act No. 6727 otherwise known as the Wage Rationalization Act 
of 1989 created the National Wages and Productivity Council (NWPC) and the 
Regional Tripartite Wages and Productivity Boards (RTWPBs), and mandated 
the latter to study, fix and raise wages on a regional level based on poverty 
threshold, employment rate, and cost of living specific to the region. However, 
this has been seen as ineffective since wage distortions have emerged in 
different regions. The RTWPBs have failed to ensure decent standard of living 
for the Filipino workers in different regions of the country.
Annual average headline inflation at the national level for the year 2018 
is at 5.2 percent; an increase from 2.9 percent in 2017. Inflation is felt 
differently per region with highest annual rate of 7.5 percent was seen in 
Autonomous Region in Muslim Mindanao (ARMM) yet minimum wage in the 
region has been one of the lowest at P270 to P280 per day.
This proposed legislation seeks the abolition of the Regional Tripartite 
Wages and Productivity Boards (RTWPBs) and replace it with the National 
Wages And Productivity Commission to address regional wage distortions. The 
said Commission will function primarily to 
determine and fix the national 
minimum wage rates according to industries and to issue corresponding wage 
orders.
In view of the foregoing considerations, the swift passage of the bill is 
earnestly sought.
JOSEPH VICTOR G. EJERCITO


SEVENTEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
Third Regular Session 
)
SENATE
2205
*19 FEB -4 P6 38
RECl.
S. B. No.
INTRODUCED BY SENATOR JOSEPH VICTOR G. EJERCITO
AN ACT
AMENDING PRESIDENTIAL DECREE NO. 442, AS AMENDED, 
OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILPPINES, AND 
PROVIDING FOR THE RATIONALIZATION OF WAGE LEVELS ON A 
NATIONAL OF INDUSTRIAL BASIS
Be it enacted by the Senate and House o f Representatives o f the Philippines in 
Congress assembled:
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SECTION 1. In line with the declared policy of the State to promote the
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productivity-improvement and gain-sharing measures to ensure a decent
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standard of living for the workers and their families and to guarantee the rights
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of labor to its just share in the fruits of production, Article 99 of Presidential
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Decree No. 442, as amended, is hereby amended and Articles 121, 122, 123,
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124, 126, and 127, are hereby incorporated into Presidential Decree No. 442,
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as amended to read as follows:
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"Art. 99 [Regional] Minimum Wages. -  The NATIONAL minimum wage
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rates for agricultural and non-agricultural employees and workers [in each and
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every region of the country] shall be those prescribed by the [Regional Tripartite
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Wages and Productivity Boards] NATIONAL WAGES AND PRODUCnviTY
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COMMISSION."


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"Art. 121. Powers and Functions of the Commission. -  The Commission 
shall have the following powers and functions:
(a) 
To act as the national consultative and advisory body to the 
President of the Philippines and Congress on matters relating to 
wages, incomes and productivity;
(b) 
To formulate policies and guidelines on wages, incomes and 
productivity improvement at the enterprise, industry and national 
levels;
(c) 
TO DETERMINE AND FIX NATIONAL MINIMUM WAGES RATES 
ACCORDING 
TO 
INDUSTRIES 
AND 
TO 
ISSUE 
THE 
CORRESPONDING WAGE ORDERS;
[(c)] (d) To prescribe rules and guidelines for the determination of appropriate 
minimum wage and productivity measures at the [regional, provincial or 
industry levels;
[(d) To review regional wage levels set by the Regional Tripartite Wages and 
Productivity Boards to determine if these are in accordance with prescribed 
guidelines and national development plans;]
( e) To undertake studies, researches and surveys necessary for the attainment 
of its functions and objectives, and to collect and compile data and periodically 
disseminate information on wages and productivity and other related 
information, including, but not limited to, employment, cost-of-living, labor 
costs, investments and returns;


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[(f) To review plans and programs of the Regional Tripartite Wages and 
Productivity Boards to determine whether these are consistent with national 
development plans;]
[(g) To exercise technical and administrative supervision over the Regional 
Tripartite Wages and Productivity Boards;]
[(h)] (f) To call, from time to time, a national tripartite conference of 
representatives of government, workers and employers for the consideration of 
measures to promote wage rationalization and productivity;
[(i)] (g) To exercise such powers and functions as may be necessary to 
implement this Act.
The Commission shall be composed of the Secretary of Labor and 
Employment as ex-officio chairman, the Director-General of the National 
Economic and Development Authority (NEDA) as e>r-(7/?7ac> vice-chairman, and 
two (2) members each from workers and employers sectors who shall be 
appointed by the President of the Philippines upon recommendation of the 
Secretary of Labor and Employment to be made on the basis of the list of 
nominees submitted by the workers and employers sectors, respectively, and 
who shall serve for a term of five (5) years. The Executive Director of the 
Commission shall also be a member of the Commission.
The Commission shall be assisted by a Secretariat to be headed by an 
Executive Director and two (2) Deputy Directors, who shall be appointed by the 
President of the Philippines, upon the recommendation of the Secretary of Labor 
and Employment.


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The Executive Director shall have the same rank, salary, benefits and 
other emoluments as that of a Department Assistant-Secretary, while the 
Deputy Directors shall have the same rank, benefits and other emoluments as 
that of a Bureau Director. The members of the Commission representing labor 
and management shall have the same rank, emoluments and allowances and 
other benefits as those prescribed by law for labor and management 
representatives in the Employees' Compensation Commission.
[Art. 122. Creation of Region Tripartite Wages and Productivity Boards. There 
is hereby created Regional Tripartite Wages and Productivity Boards, 
hereinafter referred to as Regional Boards, in all regions, including autonomous 
regions as may be established by law. The Commission shall determine the 
offices/headquarters of the respective Regional Boards.
The Regional Boards shall have the following powers and functions in their 
respective territorial jurisdiction:
(a) 
To develop plans, programs and projects relative to wages, incomes 
and productivity improvement for their respective regions;
(b) 
To determine and fix minimum wage rates applicable in their region, 
provinces or industries therein and to issue the corresponding wage 
orders, subject to the guidelines issued by the Commission;
(c) 
To undertake studies, researches and surveys necessary for the 
attainment of their functions, objectives and programs and to collect 
and compile data on wages, incomes, productivity and other related 
information and periodically disseminate the same;


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(d) 
To coordinate with other Regional Boards as may be necessary to 
attain the policy and intention of this Code;
(e) 
To receive, process and act on applications for exemption from 
prescribed wage rates as may be provided by law or any Wage Order; 
and
(f) 
To exercise such other powers and functions as may be necessary to 
carry out their mandate under this Code.
Implementation of the plans, programs and projects of the Regional Boards 
referred to in the second paragraph, letter (a) of this Article, shall be through 
the respective regional offices of the Department of Labor and Employment 
within their territorial jurisdiction; Provided, however. That the regional Boards 
shall have territorial jurisdiction; Provided, however. That the regional Boards 
shall have technical supervision over the regional office of the Department of 
Labor and Employment with respect to the implementation of said plans, 
programs and projects.
Each Regional Wage Board shall be composed of the Regional Director of the 
Department of Labor and Employment as chairman, the Regional Directors of 
the National Economic and Development Authority and the Department of 
Trade and Industry as vice-chairmen and two (2) members each from workers 
and employers sectors who shall be appointed by the President of the 
Philippines, upon the recommendation of the Secretary of Labor and 
Employment, to be made on the basis of the list of nominees submitted by the 
workers and employers sectors, respectively, and who shall sen/e for a term of 
five (5) years.


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Each Regional Board to be headed by its chairman shall be assisted by a 
Secretariat.]
Art. 12[3]2. Wage Order. -  Whenever conditions in the [region] Country so 
warrant, the [Regional Board] COMMISSION 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. Any such Wage 
Order shall take effect after fifteen (15) days from its complete publication in 
at least [one (1) newspaper of general circulation in the region.] TWO (2) 
NEWSPAPERS OF GENERAL CIRCULATION.
In the performance of its wage determining functions, the [Regional 
Board] COMMISSION shall conduct public hearings/consultations, giving notices 
to employees' and employers' groups, provincial, city, municipal officials and 
other interested parties.
Any party aggrieved by the Wage Order issued by the [Regional Board] 
COMMISSION may [appeal] SEEK A RECONSIDERATION OF such order [to the 
Commission] within ten (10) calendar days from the publication of such order. 
It shall be mandatory for the Commission to decide such [appeal] MOTION FOR 
RECONSIDERATION within sixty (60) calendar days from the filing thereof.
The filing of the [appeal] MOTION FOR RECONSIDERATION does not 
stay the order unless the person appealing such order shall file with the 
Commission an undertaking with a surety or sureties satisfactory to the 
Commission for the payment to the employees affected by the order of the 
corresponding increase, in the event such order is affirmed.


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Art. 12[4]3. Standards/Criteria for Minimum Wage Fixing. -  The [regional] 
NATIONAL minimum wage[s] to be established by the [Regional Board] 
COMMISSION shall be as nearly adequate as is economically feasible to 
maintain the minimum standards of living necessary for the health, efficiency 
and general well-being of the employees within the framework of the national 
economic and social development program. In the determination of such 
[regional] minimum wage, the [Regional Board] COMMISSION shall, among 
other relevant factors, consider the following:
(a) 
The demand for living wages;
(b) 
Wage adjustment vis-a-vis the consumer price index;
(c) 
The cost of living and changes or increases therein;
(d) 
The needs of workers and their families;
[(e) The need to induce industries to invest in the countryside;]
[(f)] (E) Improvements in standards of living;
[(g) The prevailing wage levels;]
[(h)] (F) Fair return of the capital invested and capacity to pay employers; AND
[(i) Effects on employment generation and family income;]
[G )] (G) The equitable distribution of income and wealth along the imperatives 
of economic and social development.


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The wage[s] prescribed in accordance with the provisions of this Title shall be 
the standard prevailing NATIONAL minimum [wages in every region] WAGE. 
[These wages] THIS shall include wages varying within industries, [provinces 
or localities] if in the judgement of the [Regional Board] COMMISSION, 
conditions make such [local] differentiation proper and necessary to effectuate 
the purpose of this Title.
Any person, company, corporation, partnership or any other entity engaged in 
business shall file and register annually with the [appropriate Regional Board] 
COMMISSION and the [National Statistics Office] PHILIPPINE STATISTICS 
AUTHORITY an itemized listing of their labor component, specifying the names 
of their workers and employees below the managerial level, including learners, 
apprentices and disabled/handicapped workers who were hired under the terms 
prescribed in the employment contracts, and their corresponding salaries and 
wages.
Where the application of any prescribed wage increase pursuant to law or Wage 
Order issued by [any] THE [Regional Board] COMMISSION results in distortions 
of the wage structure within an establishment, the employer and the union shall 
negotiate to correct the distortions. Any dispute arising from wage distortions 
shall be resolved through the grievance procedure under their collective 
bargaining agreement and, if it remains unresolved, through voluntary 
arbitration. Unless otherwise agreed by the parties in writing, such dispute shall 
be decided by the voluntary arbitrator or panel of voluntary arbitrators within 
ten (10) calendar days from the time said dispute was referred to voluntary 
arbitration.
In cases where there are no collective agreements or recognized labor
unions


the employers and workers shall endeavor to correct such distortions. Any 
dispute arising therefrom shall be settled through the National Conciliation and 
Mediation Board and, if it remains unresolved after ten (10) calendar days of 
conciliation, shall be referred to the appropriate branch of the National Labor 
Relations Commission (NLRC). It shall be mandatory for the NLRC to conduct 
continuous hearings and decide the dispute within twenty (20) calendar days 
from the time said dispute is submitted for compulsory arbitration.
The pendency of a dispute arising from a wage distortion shall not in any 
way delay the applicability of any increase prescribed wage rates pursuant to 
the provisions of law or Wage Order.
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As used herein, a wage distortion shall mean a situation where an
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increase in prescribed wage rates results in the elimination or severe contraction
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o f intentional quantitative differences in wage or salary rates between and
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among employee groups in an establishment as to effectively obliterate the
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distinctions embodied in such wage structure based on skills, length of service,
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or other logical bases o f differentiation.
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All workers paid by result, including those who are paid by piecework,
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takay, pakyaw or task basis, shall receive not less than the prescribed wage
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rates per eight (8) hours work a day or a proportion thereof for working less
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than eight (8) hours.
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All recognized learnership and apprenticeship agreements shall be
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considered automatically modified insofar as their wage clauses are concerned
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to reflect the prescribed wage rates.
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Art. 126. Prohibition Against Injunction. - No preliminary or permanent
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injunction or temporary restraining order may be issued by any court, tribunal
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or other entity against any proceedings before the Commission [or the Regional
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Boards].
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Art. 127. Non-diminution of Benefits.- No Wage Order issued by [any Regional
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Board] THE COMMISSION shall provide for wage rates lower than the statutory
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minimum wage rates prescribed by Congress.
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SECTION 2.
(a) Excmptod-ffom the provisions of this Act are household or domestic helpers 
and persons employed in the pcrsonal-scrvlce-of another, including family 
drivers.
Retail/service establishments regularly employing not more than ten (10) 
workers may be exempted from the applicability of this Act upon application 
with and as determined by the Commission. Whenever an application for 
exemption has been duly filed with the Commission, action on any complaint 
for alleged non-compliance with this Act shall be deferred pending resolution of 
the application for exemption by the Commission.
In the event that applications for exemptions are not granted, employees 
shall receive the appropriate compensation due them as may be granted them 
pursuant to this Act plus interest of one percent (1%) per month retroactive to 
the effectivity of this Act.
(b ) If expressly provided for and agreed upon in the collective bargaining 
agreements, all increases in the daily basic wage rates granted by the 
employers three (3) months before the effectivity of this Act shall be 
credited as compliance with the increases in the wage rates pursuant to
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this Act, provided that, where such increases are less than the increases in 
the wage rates that may be prescribed pursuant to 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.
Where the application increases in the wage rates that may be prescribed 
pursuant to this Act results in distortions as defined under existing laws in the 
wage structure within an establishment and gives rise to a dispute therein, such 
dispute shall first be settled voluntarily between the parties and in the event of 
a deadlock, the same shall be finally resolved through compulsory arbitration 
by the regional branches of the National Labor Relations Commission (NLRC) 
having jurisdiction over the workplace.
It shall be mandatory for the NLRC to conduct continuous hearings and 
decide any dispute arising under this Section within twenty (20) calendar days 
from the time said dispute arising from wage distortion shall not in any way 
delay the applicability of any increase in the wage rates that may be prescribed 
pursuant this Act.
SECTION 3. In the case of contracts for construction projects and for 
security janitorial and similar services, increases in the wage rates of the 
workers shall be borne by principals or clients of the construction/service 
contractors and the contract shall be deemed amended accordingly. In the 
event, however, that the principal or client fails to pay the prescribed wage 
rates, the construction/service contractor shall be jointly and severally liable 
with his principal or client.
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SECTION 4. Upon written permission of the majority of the employees or 
workers concerned, all private establishments, companies, businesses, and 
other entities with twenty-five (25) or more employees and located within one 
(1) kilometer radius to a commercial, savings or rural bank shall pay the wages 
and other benefits of their employees through any of said banks and within the 
period of payment of wages fixed by Presidential Decree No. 442, as amended, 
otherwise known as the Labor Code of the Philippines.
SECTION 5. Whenever applicable and upon request of a concerned worker 
or union, the bank shall issue a certification of the record of payment of wages 
of a particular worker or workers for a particular payroll period.
SECTION 6. The Department of Labor and Employment shall conduct 
inspections as often as possible within its manpower constraint of the payroll 
and other financial records kept by the company or business to determine 
whether the workers are paid the prescribed minimum wage rates and other 
benefits granted by law or any Wage Order. In unionized companies, the 
Department of Labor and Employment inspectors shall always be accompanied 
by the president or any responsible officer of the recognized bargaining unit or 
of any 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 worker representing the workers in the company. The 
workers' representative shall have the right to submit his own findings to the 
Department of Labor and Employment and to testify on the same if he cannot 
concur with the findings of the labor inspector.
SECTION 7. The Regional Tripartite Wages and Productivity Boards 
created under Republic Act No. 6727 are hereby abolished. All properties, 
records, equipment, building, facilities, and other assets, liabilities and
12


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appropriations belonging to the above-mentioned offices, as well as other 
matters pending therein, shall be transferred to the Commission.
Any official or employee separated from the service as a result of the 
abolition of office pursuant to this Act shall be entitled to appropriate separation 
pay and retirement and other benefits accruing to them under existing laws. In 
lieu thereof, at the option of the employee, he shall be preferentially considered 
for employment 
in 
the 
government or 
in 
any 
of its 
subdivisions, 
instrumentalities, or agencies, including government-owned or controlled 
corporations and their subsidiaries.
SECTION 8. Any person, corporation, trust, firm, partnership, association 
or entity which refuses or fails to pay any prescribed increases or adjustments 
in the wage rates made in accordance with this Act shall be punished by a fine 
in the amount double of the amount of wage denied to workers but in every 
case at least one hundred 
fifty thousand pesos (Php 150,000.00) and/or 
imprisonment of not less than one (1) year nor more than two (2) years: 
Provided, That any person convicted under this Act shall not be entitled to the 
benefits provided for under the Probation Law.
If the violation is committed by a corporation, trust or firm, partnership, 
association or any other entity, the penalty of imprisonment shall be imposed 
on the entity's responsible officers, including, but not limited to, the president, 
vice-president, chief executive officer, general manager, managing director or 
partner.
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SECTION 9. The Secretary of Labor and Employment shall promulgate 
the necessary rules and regulations to implement the provisions of this Act.
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SECTION 10. Republic Act No. 6727, otherwise known as the "Wage
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Rationalization Act", is hereby expressly repealed. All laws, orders, issuances,
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rules and regulations or parts thereof inconsistent with the provisions of this
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Act are hereby repealed, amended or modified accordingly. If any provision or
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part of this Act, or application thereof to any person or circumstance, is held
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invalid or unconstitutional, the remainder of this Act or the application of such
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provision or part hereof to other persons or circumstances shall not be affected
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thereby.
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Nothing in this Act shall be construed to reduce any existing wage rates,
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allowances and benefits of any form under existing laws, decrees, issuances,
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executive orders, and/or under any contract or agreement between the workers
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and the employers.
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SECTION 11. This Act shall take effect fifteen (15) days after its publication in
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the Official Gazette or in two (2) newspapers of general circulation.
Approved,
14


SEVENTEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
Third Regular Session 
)
¥■ i t *
i-
-f-: 
r f’frr
*19 
FEB-4 P6 37
SENATE
P.S. Res. No. 1 0 1 2
R £ . .
INTRODUCED BY SENATOR JOSEPH VICTOR G. EJERCITO
RESOLUTION
CONGRATULATING AND COMMENDING THE OUTSTANDING YOUNG 
MEN (TOYM) 2018 AWARDEES FOR THEIR SIGNIFICANT 
CONTRIBUTIONS TO THE WELFARE OF THE COUNTRY
WHEREAS, the Philippine Jaycees, Inc is an organization which 
contributes to the advancement of the global community by providing young 
persons with the opportunity to develop leadership skills, social and fellowship 
for positive change;
WHEREAS, The Outstanding Young Men (TOYM) was initiated by the 
Manila Jaycees as a chapter project in 1959;
WHEREAS, over the years, the TOYM Awards has become an annual 
project of the Junior Chamber International (JCI)-Philippines, and co-presented 
by PLOT, Gerry Roxas Foundation, Inc and the TOYM Foundation, Inc, and has 
developed a reputation for its selectiveness of outstanding young men upon 
whom the awards are conferred;
WHEREAS, the 2018 Awardees who came from the fields of economic 
development, public service, law enforcement, public health, journalism, 
education, among others have showed great dedication and commitment not 
just in enriching their profession but more so the well-being of their countrymen 
and the country as a whole;
WHEREAS, eleven (11) exemplary awardees were formally selected in 
2018 and joined the ranks of 492 former awardees as Outstanding Young Men 
and Women of the Philippines;
WHEREAS, the Senate, as an expression of its support to the youth and 
nation-building, joins the Junior Chamber International (JCI)-Philippines, PLDT,


Gerry Roxas Foundation, Inc and the TOYM Foundation, in commending and 
honoring the Awardees through this recognition;
NOW, THEREFORE, BE IT  RESOLVED, AS IT  IS  HEREBY RESOLVED, by
the Senate of the Philippines to congratulate and commend The Outstanding 
Young Men (TOYM) 2018 Awardees, namely:
1. 
Dr. Nassef Manabilang Adiong -  International Relations
2. 
Ms. Jamela Aisha Martinez Alindogan -  International Journalism
3. 
Ms. Cherrie De Frit Atilano -  Agri-business
4. 
Mr. Karl Kendrick Tiu Chua -  Economic Development
5. 
Mr. Bernard Faustina La Madrid Dy -  Public Service
6. 
Mr. Rodne Rodino Galicha -  Environmental Conservation
7. 
Ms. Fatima Penones Ibias-Lanuza -  Law Enforcement
8. 
Dr. Erika Fille Tupas Legara -  Education Innovation
9. 
Dr. Katerina Tolentino Leyritana -  Public Health
10. 
Dr. Mark Anthony Santiago Sandoval -  Medicine
11. 
Mr. Jaton Zulueta Jr. -  Coomunity Development
RESOLVED FURTHER, that copies of the Resolution be furnished to the 
aforementioned Awardees.
Adopted,
■
SENATOR JOSEPH VICTOR G. EJERCITO