TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
25 JiJL-3 P4 ;26
SENATE 
S. No. 82
Introduced by Senator Raffy T. Tulfo
AN ACT
STRENGTHENING THE RIGHTS OF PIECE-RATE WORKERS, PROVIDING FOR 
STRICTER REPORTORIAL REQUIREMENTS AND PENALTIES FOR VIOLATIONS 
THERETO AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Piece-rate workers, or more commonly referred to as ''pakyaW workers are those 
who are paid based on units of work performed rather than hours worked. This type of 
workers has long been recognized and covered by the Labor Code, with the mode of 
compensation being prevalent in industries such as agriculture, manufacturing, logistics, 
and textiles. Such piece-rate system is often implemented to boost productivity and 
efficiency, as it incentivizes workers to produce more while simplifying wage calculation 
for employers. Nonetheless, this system has also become a frequent source of abuse and 
blatant violations of labor standards law.
Majority of employers adopting a piece-rate compensation scheme fail to pay and 
provide for pakyaw\NorVsxs what is due them, resulting to non-payment of wages which 
should be at least equivalent to the statutory minimum wage, and other mandatory 
entitlements like 13th month pay, holiday and service incentive leave pay. In addition, 
employers often refuse to compensate for mandatory nonproductive time such as waiting, 
recovery and rest periods, thus leaving workers exhausted and underpaid for 
unreasonable hours. These abusive practices are even aggravated by non-compliance 
with mandatory technical and reportorial requirements prescribed by labor issuances and 
guidelines. Piece-rate workers are therefore left at the mercy of violators who


disproportionately harm vulnerable and low-income laborers., including migrant workers, 
women, and informal workers.
To address these systemic abuses, it is imperative to adopt stricter enforcement 
measures by mandating compliance with labor reportorial requirements, holding 
employers criminally and civilly accountable for willful and repeated violations, and 
promoting transparency through proper recordkeeping and wage disclosures.
In view of the foregoing, the passage of this bill is earnestly sought.
T. lULFO


TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
25 JUL -3 P4 :26
)
SENATE 
S. No. 82
Introduced by Senator Raffy T. Tulfo
AN ACT
STRENGTHENING THE RIGHTS OF PIECE-RATE WORKERS, PROVIDING FOR 
STRICTER REPORTORIAL REQUIREMENTS AND PENALTIES FOR VIOLATIONS
THERETO AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress Assembled:
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Section 1. Short Title. -This Act shall be known as the "Anti-Abuse of Pakyawan
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Workers Act."
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Sec. 2. Declaration of Policy. - It is hereby declared the policy of the State to afford
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full protection to labor including those who are compensated on a piece-rate basis.
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The State shall endeavor to protect the rights and promote the welfare of piece-
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rate workers, otherwise known as "pakyawan" who have long been neglected and
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subjected to abusive labor practices. Towards this end, the State shall enforce
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transparency and compliance with strict reportorial requirements to deter willful violations
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by employers and impose stiffer penalties to ensure compliance.
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Sec. 3. Coverage.-Vd\s Act shall apply to all employers, including MSMEs, who
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adopt a piece-rate compensation system, regardless of industry, and to all workers
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engaged under such compensation system, as defined by Article 82 and Article 101 of
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Presidential Decree 442, otherwise known as The Labor Code, as amended.
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Sec. 4. Definition of Terms.- As used in this Act, the following are defined as
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follows:
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(a) "DOLE" refers to the Department of Labor and Employment.


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(b) "DOLE-RO" means the Department of Labor and Employment- Regional Office.
(c) "Employee" refers to any individual employed by an employer.
(d) "Employer" refers to any person acting directiy or indirectly in the interest of an 
employer in relation to an employee.
(e) "Establishment" refers to micro, smail and medium business entities engaged in 
any economic activity whose workers are paid by result including pakyaw, piece 
work, commission or any other non-time work.
(f) "Micro, small, and medium enterprises (MSMEs)" refers to any business 
activity/enterprise engaged in industry, agri-business/services, whether single 
proprietorship, cooperative, partnership, or corporation whose total assets, 
inclusive of those arising from loans but exclusive of the land on which the 
particular business entity's office, plant and equipment are situated, must have 
value falling under the following categories:
By Asset Size
Micro :
Up to P3,000,000
Small:
P3,000,001 - P15,000,000
Medium:
P15,000,001 - P100,000,000
Large :
above P100,000,000
Alternatively, they may also be categorized based on the number of employees:
Micro :
1-9 employees
Small:
10 - 99 employees
Medium:
100 -199 employees
Large:
More than 200 employees
14 (g)"NWPC" means the National Wages and Productivity Commission.


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(h) "Order" means Piece Rate Order or Production Standard Order issued by the DOLE 
Regional Director, in his capacity as DOLE Chairperson based on the 
recommendation of the Board's Secretariat as a result of TMS conducted in an 
applicant-firm.
(i) "Piece-Rate" means the mode of payment whereby an employee is paid on the 
basis of his production, i.e. on the amount or quantity of work done rather than 
time employed.
(j) "RTWPB" means the Regional Tripartite Wages and Productivity Board.
(k) "Time and Motion Study" means the systematic determination of work methods 
and time standards using various tools/technologies.
(l) "Wages" means remuneration or earnings, however designated, capable of being 
expressed in terms of money, whether fixed or ascertained on a time, task, piece 
or commission basis or other method of calculating the same, which is payable by 
an employer to an employee under a written or unwritten contract of employment 
for work done or to be done, or for services rendered or to be rendered and 
includes the fair and reasonable value, as determined by the Secretary of Labor 
and Employment, of board, lodging or other facilities customarily furnished by the 
employer to the employee.
Sec. 5. Prohibited Acts. -The following are deemed violations of this Act:
1. Underpayment- payment of wages below the applicable minimum wage 
or below the prescribed amount agreed upon by the employer and the 
employee pursuant to a duly approved Piece-Rate Order.
2. Nonpayment - refusal to pay by the employer of mandatory statutory 
benefits, such as but not limited to 13th pay, if applicable, overtime pay, 
holiday pay and service incentive leave pay.
3. Non-compliance with a Piece-Rate Order - failure by the employer to 
comply with the terms and conditions of a Piece-rate Order duly-issued by 
the Regional Tripartite and Wages Productivity Board (RTWPB) and as 
approved by the National Wages and Tripartite Commission (NWPC).


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4. Non-submission of a Piece-Rate Order which has been updated, with 
the RTWPB which has jurisdiction over the empioyer and NWPC, foilowing 
a new wage order applicable to the area where the employer operates and 
conducts business.
5. Failure to apply for and conduct a Time and Motion Study by the
establishment, or employer or its duly-authorized representative, or the 
employee or the employee's union, prior to the issuance of a valid Piece- 
Rate Order, pursuant to DOLE Department Order No. 125-13, dated April 
01, 2013.
Sec. 6. Mandatory Posting, Recordkeeping and Reportoria! Requirements. - Upon 
the issuance of a duly-approved Piece-Rate Order following the conduct of a valid and 
actual Time and Motion Study, the employer and the employee or the employee's union, 
shall each be furnished a copy of the Order. The employer shall post a copy of the Order 
in a bulletin board or in a conspicuous place in the establishment where the affected 
workers perform their tasks. A certification to this effect shall be subsequently submitted 
to the RTWPB concerned and a copy to be submitted likewise to the DOLE-RO.
The RTWPB shall maintain a database of all Piece-Rate Orders issued within its 
area of jurisdiction, and the same shall be shared with the DOLE-RO. In instances where 
a new Wage Order is issued, the DOLE-RO shall, within its jurisdiction, require all 
employers implementing a Piece-Rate Order to submit a Sworn Certification if their 
respective establishment is affected. Should any adjustments be applicable, the DOLE- 
RO shall conduct an onsite inspection of the books of the employer concerned to ensure 
compliance with a new Wage Order, and thereafter issue an amended Piece-Rate Order 
reflecting the adjustments. Correspondingly, the employer is mandated to issue a written 
notice to all its affected employees regarding the newly adjusted compensation rates 
under the amended Piece Rate Order.
Sec. 7. Penaities. -
(a) For a first offense, an employer shall be meted a fine of One Million 
Pesos (Php 1,000,000.00), plus payment of full backwages and other


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applicable statutory benefits under labor laws and the suspension of 
business operations for not more than 15 days;
(b) For a second offense, the employer shall be meted a fine of Two 
Million Pesos (Php 2,000,000.00), plus payment of full backwages and other 
applicable statutory benefits under labor laws, the suspension of business 
operations for not more than 60 days and a perpetual ban on the employer 
to implement a piece-rate compensation scheme.
(c) For any subsequent offense, the employer shall be meted a fine of 
Five Million Pesos (Php 5,000,000.00) plus the payment of full backwages 
and other applicable statutory benefits under labor laws and the closure of 
business of the employer.
(d) In cases where an employee is covered by a validly existing contractual 
agreement, the liability of the employer and the contractor under this Act 
shall be solidary in nature, in accordance with the provisions of Article 109 
of the Labor Code, as amended.
Section 8. Enforcement. -
Pursuant to its powers under Articles 128 and 129 of the Labor Code, as amended, 
and the provisions of Section 129 of Republic Act No. 6727 otherwise known as "The 
Wage Rationalization Act", the DOLE shall conduct monitoring and inspection to ensure 
compliance with the provisions of this Act and to investigate, prosecute and decide upon 
cases of violations herein.
The DOLE, through its RTWPB-RO shall conduct random inspections on a quarterly 
basis to ensure compliance with the provisions of this Act. The refusal or failure of an 
officer to exercise this mandatory function shall be subject to administrative sanctions 
under pertinent and applicable civil service laws, including but not limited to suspension 
or removal from office.
Sec. 9. Implementing Rules and Regulations. - Within sixty (60) days from the 
approval of this Act, the Secretary of the DOLE shall, in consultation with the NWPC, the 
RTWPB per region, the Secretary of the DOJ, the Secretary of the DILG and all 
stakeholders from the business sector, workers' groups, and private enterprises


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promulgate the necessary rules and regulations for the effective implementation of this 
Act.
Sec. 10. Repealing Clause. - All laws, decrees, executive orders, issuances, rules 
and regulations which may be inconsistent with any of the provisions of this Act are 
hereby deemed repealed, amended or modified accordingly.
Sec. 12. Separability Clause. If any provision of this Act is held unconstitutional or 
invalid, such holding shall not affect other provisions not affected thereby.
Sec. 10. Effectivity. -This Act shall take effect fifteen (15) days after its publication 
in the Official Gazette or in a newspaper of general circulation.
Approved,