TWENTIETH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
of ll)r i'ci'CUii'p
25 AUG 20 P5 39
SENATE 
S. No. 1244
RECEIVED BY;
Introduced by Senator Raffy T. Tulfo
AN ACT
ESTABLISHING THE STANDARDS FOR A LIVING WAGE, AMENDING FOR THE 
PURPOSE PRESIDENTIAL DECREE NO. 442, OTHERWISE KNOWN AS THE 
LABOR CODE OF THE PHILIPPINES, AS AMENDED
EXPLANATORY NOTE
The labor force population in the Philippines is equivalent to 52.42 million Fiiipinos 
(2020 Census of Population and Housing)1. As of July 2025, the average daily nominal 
minimum wage rate in the Philippines is 481 pesos while the family living wage for a 
family of five is 1,218 pesos leading to a wage gap of 737 pesos. Based on a study 
conducted by the IBON Foundation.2
It is provided in the 1987 Constitution that all workers shall be entitled to a living 
wage (Article XIII. Section 3) and that the State shall promote a just and dynamic social 
order that will ensure the prosperity and independence of the nation and free the people 
from poverty through policies that provide adequate social services, promote full 
employment, a rising standard of living, and an improved quality of life for all.
The International Labour Organization (ILO) defines living wage as'Y/?e wage level 
that Is necessary to afford a decent standard of living for workers and their families, 
taking into account the country circumstances and calculated for the work performed
1 https://psa.gov.ph/content/household-population-number-households-and-average-household-size- 
philippines-2020-census
2 https://www.ibon.org/flw-regl-2507/


during the normal hours of work. ,<?The standard for a living wage should be in line with 
definition provided by the ILO. This ensures that all factors that influence an average 
Filipino's daily expenses is covered and is enough to provide the basic necessities for his 
or her family.
This measure aims to revise Article 124 of Presidential Decree No. 442, also known 
as the Labor Code of the Philippines, to establish the living wage as the new standard for 
setting regional minimum wages. It promotes a data-driven and transparent approach to 
wage-setting, ensuring that families receive adequate support to meet their fundamental 
needs—including sufficient food, decent housing, education, healthcare, and meaningful 
social participation.
In view of the foregoing, immediate approval of this measure is earnestly sought.
RAFFY T. TULFO
! https://www.ilo.org/what-living-wage


TWENTIETH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
s. No. 1244
Senate
/(©ffitr of tljp &ftrflarp
25 AUG 20 P5:39
RECEIVED BY:
Introduced by Senator Raffy T. Tulfo
AN ACT
ESTABLISHING THE STANDARDS FOR A LIVING WAGE, AMENDING FOR THE 
PURPOSE PRESIDENTIAL DECREE NO. 442, OTHERWISE KNOWN AS THE 
LABOR CODE OF THE PHILIPPINES, AS AMENDED
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 "Living Wage Act".
2 
Sec. 2. Article 124 of Presidential Decree No. 442, as amended and renumbered,
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is hereby amended to read as follows;
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"ART. 124. Standards/Criteria for Minimum Wage Fixing. — The regional
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minimum wages to be established by the Regional Board shall [bo as- f>eat4y
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odequote-as is economically feasible to mointoin the minimum standards of living
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necessary for the health, efficiency and-general wellbeing of the employees within
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the framework of the national economic and social development program] MEET
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THE LIVING WAGE THAT IS NECESSARY TO AFFORD A DECENT
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STANDARD OF LIVING FOR WORKERS AND THEIR FAMILIES. In the
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determination of such regional minimum wages, the Regional Board shall, among
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other relevant factors, consider the following:
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(a) [The demand for living-wages] ESTIMATION OF THE NEEDS OF
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WORKERS AND THEIR FAMILIES, INCLUDING BUT NOT
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LIMITED TO FOOD, CLOTHING, SHELTER, HEALTHCARE,
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EDUCATION, CONDUCTED THROUGH TRANSPARENT AND


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EVIDENCE-BASED METHODOLOGIES IN CONSULTATION WITH 
TRIPARTITE INDUSTRIAL PEACE COUNCILS (TIPCs);
(b) Wage adjustment vis-a-vis the consumer price index;
(c) [The] CHANGES IN the cost of living and [changes or increases 
therein] PATTERNS OF CONSUMPTION;
The needs-ef workers and-their families;]
(D) The need to induce industries to invest in the countryside;
(E) Improvements in standards of living;
(F) The prevailing wage levels;
(G) [fair return of the capital invested and c] Capacity to pay of employers;
(H) Effects on employment generation and family income; and
(I) The equitable distribution of income and wealth along the imperatives 
of economic and social development.
XXX
Sec. 3. Implementing Rules and Regulations. - Within ninety (90) days from the 
effectivity of this Act, the Department of Labor and Employment, in coordination with 
the Tripartite Industrial Peace Councils and other relevant stakeholders, shall promulgate 
the rules and regulations for the effective implementation of this Act
Sec. 4. Separability Clause. - If any portion or provision of this Act is declared 
unconstitutional, the remainder of this Act or any provision not affected thereby shall 
remain in force and effect.
Sec. 5. Repealing Clause. - Any law, presidential decree or issuance, executive order, 
letter of instruction, rule or regulation inconsistent with the provisions of this Act is hereby 
repealed or modified accordingly.
Sec. 6. Effectivity. - This Act shall take effect after fifteen (15) days following its 
complete publication in the Official Gazette or a newspaper of general cfirculation.
Approved,