1 
2 
3 
4 
5 
6 
7 
8 
9 
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
House Bill No. 2603 
10 
11 
12 
Introduced by CIBAC Party-List Representative 
13 
EDUARDO “BRO. EDDIE” C. VILLANUEVA 
14 
15 
16 
EXPLANATORY NOTE 
17 
18 
Article XIII, Section 3 of the 1987 Philippine Constitution mandates the State to 
19 
guarantee the rights of workers to a living wage and humane conditions of work. 
20 
However, the prevailing minimum wage rates in most regions of the country remain 
21 
far below what is necessary for a dignified standard of living. 
22 
Current wage-setting mechanisms rely on generalized economic indicators 
23 
without ensuring that the minimum wage meets the actual cost of living of workers and 
24 
their families. As a result, many wage earners struggle to afford basic needs such as 
25 
food, housing, education, and healthcare, perpetuating poverty and inequality across 
26 
regions. 
27 
This proposed measure seeks to amend Article 124 of the Labor Code by 
28 
mandating that regional minimum wages must meet living wage standards. 
29 
Specifically, it requires that wage levels ensure the nourishment, clothing, shelter, and 
30 
education of workers and their families—shifting the basis of wage determination 
31 
toward real and region-specific living costs. 
32 
By anchoring wage-setting mechanisms to the actual needs of families and 
33 
reinforcing the accountability of employers through reporting requirements, this bill 
34 
promotes economic justice and aligns national labor policy with constitutional 
35 
principles and international labor standards. 
36 
The passage of this measure is a critical step toward ensuring that all Filipino 
37 
workers are compensated fairly and allowed to live with dignity. 
38 
39 
40 
HON. EDUARDO “BRO. EDDIE” C. VILLANUEVA 
41 
Representative, CIBAC Party-List 
42 
43 
44 
45 
July 30, 2025
11:10 am


1 
2 
3 
4 
5 
6 
7 
8 
9 
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. 2603 
10 
11 
12 
Introduced by CIBAC Party-List Representative 
13 
EDUARDO “BRO. EDDIE” C. VILLANUEVA 
14 
15 
16 
AN ACT 
17 
ESTABLISHING THE STANDARDS FOR A LIVING WAGE, AMENDING FOR THE 
18 
PURPOSE ARTICLE 124 OF PRESIDENTIAL DECREE NO. 442, AS AMENDED, 
19 
OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES 
20 
21 
Be it enacted by the Senate and House of Representatives of the Philippines in 
22 
Congress assembled: 
23 
24 
25 
SECTION 1. Article 124 of the Labor Code is hereby amended to read as 
26 
follows: 
27 
28 
“ARTICLE 124. Standards/Criteria for minimum wage fixing. – The 
29 
regional minimum wages to be established by the Regional Board shall 
30 
MEET THE LIVING WAGE STANDARDS IN THE REGION, WHICH 
31 
SHALL ENSURE THE EMPLOYEES’ AND THEIR FAMILIES’ 
32 
NOURISHMENT, CLOTHING, SHELTER, EDUCATION, be as nearly 
33 
adequate and economically feasible to maintain the minimum standards 
34 
of living- necessary-for-the health, efficiency and general well-being of- 
35 
the employees within the framework of the national economic and social 
36 
development program. In the determination of such regional minimum 
37 
wages, the Regional Board shall, among other relevant factors, consider 
38 
the following: 
39 
40 
(a) The demand for living wages ESTIMATED COST OF LIVING FOR
41 
A DETERMINED SIZE OF A FAMILY IN THE REGION;
42 
43 
(b) Wage adjustment vis-a-vis the consumer price index;
44 
45 
(c) The cost of living and changes or increases therein
46 
47 
(d) The needs of workers and their families;
48 


 
 
1 
(e) The need to induce industries to invest in the countryside; 
2 
 
3 
(f) Improvements in standards of living; The prevailing wage levels; 
4 
 
5 
(g) Fair return of the capital invested and eCapacity to pay of 
6 
employers: AND 
7 
 
8 
(h) Effects on employment generation-and family income; and 
9 
 
10 
(i) The equitable distribution of income and wealth along the 
11 
imperatives of economic and social development 
12 
 
13 
The wages prescribed in accordance with the provisions of this Title shall be 
14 
the standard prevailing minimum wages in every region. These wages shall include 
15 
wages varying with industries, provinces or localities if in the judgment of the Regional 
16 
Board, conditions make such local differentiation proper and necessary to effectuate 
17 
the purpose of this Title. 
18 
 
19 
Any person, company, corporation, partnership or any other entity engaged in 
20 
business shall file and register annually with the appropriate Regional Board, 
21 
Commission and the National Statistics Office, an itemized listing of their labor 
22 
component, specifying the names of their workers and employees below the 
23 
managerial level, including learners, apprentices and disabled/handicapped workers 
24 
who were hired under the terms prescribed in the employment contracts, and their 
25 
corresponding salaries and wages. Where the application of any prescribed wage 
26 
increase by virtue of a law or wage order issued by any Regional Board results in 
27 
distortions of the wage structure within an establishment, the employer and the union 
28 
shall negotiate to correct the distortions. 
29 
 
30 
Any dispute arising from wage distortions shall be resolved through the 
31 
grievance procedure under their collective bargaining agreement and, if it remains 
32 
unresolved, through voluntary arbitration. Unless otherwise agreed by the parties in 
33 
writing, such dispute shall be decided by the voluntary arbitrators within ten (10) 
34 
calendar days from the time said dispute was referred to voluntary arbitration. In cases 
35 
where there are no collective agreements or recognized labor unions, the employers 
36 
and workers shall endeavor to correct such distortions. 
37 
 
38 
Any dispute arising therefrom shall be settled through the National Conciliation 
39 
and Mediation Board and, if it remains unresolved after ten (10) calendar days of 
40 
conciliation, shall be referred to the appropriate branch of the National Labor Relations 
41 
Commission (NLRC). It shall be mandatory for the NLRC to conduct continuous 
42 
hearings and decide the dispute within twenty (20) calendar days from the time said 
43 
dispute is submitted for compulsory arbitration. The pendency of a dispute arising from 
44 
a wage distortion shall not in any way delay the applicability of any increase in 
45 
prescribed wage rates pursuant to the provisions of law or wage order. 
46 
 
47 
As used herein, a wage distortion shall mean a situation where an increase in 
48 
prescribed wage rates results in the elimination or severe contraction of intentional 
49 


 
quantitative differences in wage or salary rates between and among employee groups 
1 
in an establishment as to effectively obliterate the distinctions embodied in such wage 
2 
structure based on skills, length of service, or other logical bases of differentiation. All 
3 
workers paid by result, including those who are paid on piecework, takay, pakyaw or 
4 
task basis, shall receive not less than the prescribed wage rates per eight (8) hours of 
5 
work a day, or a proportion thereof for working less than eight (8) hours. All recognized 
6 
learnership and apprenticeship agreements shall be considered automatically 
7 
modified insofar as their wage clauses are concerned to reflect the prescribed wage 
8 
rates. (As amended by Republic Act No. 6727, June 9, 1989)” 
9 
 
10 
SEC. 2. Implementing Rules and Regulations. - Within thirty (30) days from 
11 
the effectivity of this Act, the Secretary of Labor and Employment, in consultation with 
12 
the Tripartite Industrial Peace Council and other relevant stakeholders, shall issue the 
13 
necessary rules and regulations to implement the provisions of this Act. 
14 
 
15 
SEC. 3. Separability Clause. - If any part or provision of this Act is held invalid 
16 
or unconstitutional, other provisions not affected thereby shall remain in force and 
17 
effect. 
18 
 
19 
SEC. 4. Repealing Clause. – All laws. Executive Orders, Presidential Decrees, 
20 
rules and regulations inconsistent herewith are deemed modified and repealed 
21 
accordingly. All affected provisions of existing laws are deemed effective until such 
22 
promulgation of the IRR. 
23 
 
24 
SEC. 5. Effectivity Clause. - This Act shall take effect fifteen (15) days upon 
25 
its complete publication in the Official Gazette or in at least two (2) newspapers of 
26 
general circulation, whichever comes first. 
27 
 
28 
Approved,   
29