FIFTEENTH CONGRESS of the 
) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
) 
Introduced by RON. RAMON BONG REVILLA, ~1Vr:O ~ 
. 
/ 
EXPLANATORY NOTE 
In June 2001, the National Wages and Productivity Commission (NWPC) came up with 
new estimates ofthe living wage and cost ofliving for all regions: 
Regions 
Current Minimum Wages 
Family Living 
Non-Agri Workers 
Agri Workers 
Wal!:ein PhP 
NCR 
350 
313 
764 
CAR 
235 
222 
735 
Region I 
225 
195 
713 
Region II 
218 
206 
630 
Region III 
278 
248 
651 
Region IV 
287 
262 
669 
Region V . 
220 
198 
637 
Region VI 
222 
203 
562 
Region VII 
241 
223 
736 
Region VIII 
220 
201 
476 
Region IX 
215 
190 
668 
Region X 
234 
222 
637 
Region XI 
240 
230 
631 
Region XII 
224.5 
208 
610 
Region XIII 
214 
201 
ARMM 
200 
200 
1005 
The above data showed that there is a substantial discrepancy from the current minimum 
wage that an employee earns compared to the required living wage. The NWPC defines living 
wage as the amount of family income needed to provide for the "cost of living," which includes 
food and non-food requirements, with sufficient allowance for savings and investments for social 
security. 
The real value of workers' wages had also seriously been eroded. There are statistical 
proofs to show that. The purchasing power of the peso in Metro Manila, or the amount of goods 
and services one peso can buy, fell from PO.72 in 2006, to PO.70 in April 2007. 
It is therefore timely and necessary to enact a legislation that would alleviate the living 
conditions of the people, hence, the filing of this proposed meaSure of a P 125 across-the-board 
wage increase nationwide. 
Other factors that underscore the urgency of this measure are the increasing cost of 
utilities like power, water, oil and other petroleum products, etc. 
Rence, passage of this bill is earnestly sought. 


FIFTEENTH CONGRESS of the 
) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
S.B. No. 1981 
,,', 
SE III ATE 
a i a: * Tt* SECftETNW 
, Introduced by HON. RAMON BONG REVILLA, JR. 
"AN ACT 
PROVIDING FOR A Pl2S.00 DAILY ACROSS-THE-BOARD INCREASE IN 
THE SALARY RATES OF EMPLOYEES AND WORKERS IN THE PRIVATE 
SECTOR AND FOR OTHER PURPOSES." 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. - This Act shaH be known as "The PI25.00 Daily-Across-
the-Board Wage Increase Act. " 
SECTION 2. Declaration of Policy. - It is a policy of the State to alleviate the living 
conditions of an ordinary Filipino through policies that provide for a decent and humane standard 
of living and improved the 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. 
SECTION 3. Across-the-Board Wage Increase. - In line with the declared policy 
under this Act, all employers in the private sector, whether agricultural or non-agricultural, 
regardless of capitalization and number of employees shall pay their workers an across-the-board 
wage increase in the sum of One Hundred Twenty-Five Pesos'(PI25.00) a day to be paid in the 
following manner: 
(A) 
Upon the effectivity of this Act, an additional Forty-five pesos (P45.00) a day; 
(B) 
The year thereafter, an additional Forty pesos (P40.00) a day; and 
(C) 
On the third year, the remaining amount of Forty pesos (P40.00) a day shall be 
added. 
SECTION 4. Non-chargeability of prior increases. - No wage increase shall be 
credited as compliance with the increase prescribed herein unless expressly provided under valid 
collective bargaining agreements: Provided, that such wage increase was granted in anticipation 
of the legislated across-the-board wage increase under this Act: Provided forther, 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. 
SECTION S. Non-diminution of other benefits. - Nothing in this Act shall be 
construed to reduce any existing alIowance and benefit of any form under existing laws, decrees, 
issuances, executive orders and any contract or agreement between workers and employers. 


SECTION 6. Inspection by the DOLE. - The Department of Labor and Employment 
(DOLE) shall, after approval of this Act, conduct inspection of payroll and other financial 
records kept by the company or business to determine whether the workers are paid the 
prescribed across-the-board wage increase and other benefits granted by law. In unionized 
companies, the DOLE 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 said company. The 
workers' representative shall have the right to submit his own findings to the DOLE and to 
testifY on the same if he cannot concur with the findings of the labor inspector. 
SECTION 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 Twenty-
Five Thousand Pesos (P25,OOO.OO) nor more than One Hundred Thousand Pesos (PlOO,OOO.OO) 
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, but not limited to, 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. 
SECTION 8. Implementing Rules and Regulations. - The Secretary of Labor and 
Employment shall promulgate the necessary rules and regulations to implement this Act. 
SECTION 9. Separability Clause. - If any provision or part of this Act or the 
application thereof to any person or circumstance is held invalid or unconstitutional, the 
remainder of this Act or the application of such provision or part thereof to other persons or 
circumstances shall not be affected thereby. 
SECTION 10. Repealing Clause. - All laws, orders, issuances, rules and regulations 
pr parts thereof inconsistent with the provisions of this Act are hereby repealed, amended or 
modified accordingly. 
SECTION 11. Effectivity Clause. - This Act shall take effect within fifteen (15) days 
after its publication in the Official Gazette or in at least two newspapers of general circulation, 
whichever comes earlier. 
Approved, 
2