TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
25 JUL-3 P5:08
S. B. No.
INTRODUCED BY SENATORS ALAN PETER “COMPANERO” S. CAYETANO, 
PIA S. CAYETANO, AND FRANCIS “CHIZ” ESCUDERO
AN ACT
ESTABLISHING AN EXECUTIVE-LEGISLATIVE LABOR 
COMMISSION TO IDENTIFY KEY CHALLENGES IN THE LABOR 
SECTOR, PROPOSE SOLUTIONS FOR THE ESTABLISHMENT OF A 
NATIONWIDE FRAMEWORK FOR A LIVING WAGE, AND 
INSTITUTIONALIZE A NATIONAL LABOR ROADMAP
EXPLANATORY NOTE
The kind of society we aspire for, with the aid of Almighty God, is embodied 
in the preamble of our Constitution. The hope of building a just and humane society 
will begin once we look beyond simply providing a minimum wage, and start aiming 
for a living wage for all Filipinos.
While many factors contribute to building that ideal society—rules-based 
peace and order, reliable and affordable housing, and public utilities, including a 
reliable internet connection, quality education, and free healthcare—^the debate 
over wages remains.
The business sector argues that increasing minimum wage could lead to 
closures, particularly among small enterprises. Regional workers question why 
their work is less valued than their urban counterparts. Parents are forced to 
choose between staying with their children or working abroad to provide for them. 
And millions of farmers, who for generations have relied on what they can grow 
from the land, are being lured to the city by the promise of a regular salary.
Then while the policymakers, with industry leaders, engage in endless, 
paralyzing cycles of debates, our people are left to suffer as we wrestle with finding 
a just and permanent solution to these labor and wage issues.
Indeed, as part of honoring God and building communities through good 
governance, the State must promote human dignity in the labor sector and create 
a system where all persons are given the chance to thrive and rise above 
adversities through proper government support to ensure an enabling working 
environment that protects their rights, promotes their welfare, and enhances their 
productivity.
Ensuring that all persons are not discriminated against and provided equal 
opportunity regardless of age, sex, gender, civil status, disability, ethnicity, 
religious belief, political affiliation, or any other distinction, exclusion or preference, 
everyone shall be accorded fair and equal access to employment, promotion,


training, terms and conditions of work, and other employment-related benefits, 
based solely on merit and capability, with the aim of obtaining decent and 
productive work in conditions of freedom, equity, security and human dignity.
However, despite the government’s efforts throughout the years to address 
these gaps in the iabor sector, there remains little to no major improvements in 
establishing a framework to determine a living wage.
This measure takes inspiration from the work of the First and Second 
Congressionai Commissions on Education, or the EDCOMs I and II, bodies tasked 
to undertake a comprehensive nationai assessment and evaluation of the 
Philippine education sector. These were able to successfully bring together key 
stakeholders and produce effective, concrete, and actionable recommendations to 
address the learning crisis. The proposed measure creates an Executive- 
Legisiative Labor Commission, or the LabCom, which likewise aims to achieve 
similar successes in the labor sector by providing innovative, comprehensive, and 
strategic recommendations to address emerging and persistent issues and 
chailenges. This would provide a comprehensive look at what the real wage should 
look like, taking into account the actual expenses of a family for education, health, 
among others.
High underemployment and informal employment, along with inadequate 
wages, wage inequality, and poor job quaiity, are the most perennial problems of 
the Philippine iabor sector and serve as key indicators of deep-seated structurai 
weaknesses in the national economy. Despite the recent improvements in the 
employment rate at 96.2% as of February 2025, the country continues to grapple 
with 1.94 million Filipinos remaining jobless, translating to an unemployment rate 
of 3.8%. More telling, however, is the underemployment rate, which stands at 
10.1%, wherein about 4.96 million of the 49.15 million empioyed workers 
expressed desire to have additional hours of work at their present job and/or to 
have an additional job to make ends meet.1 Meanwhile, the 17 million or 36.2% of 
the Filipino workforce are engaged in the informal economy, with no access to 
social protection and excluded from typical safety nets during crises.2
These numbers translate to Filipinos’ perception of lived reality. According 
to the recent Social Weather Stations (SWS) survey conducted in April 2025, 55% 
of Filipino families consider themselves as Mahirap or Poor. The numbers rose 
from 14.4 million to 15.5 million in just one month. This alone calls for the State to 
take action.
Not only do we view ourselves as economically poor, but even from an 
international perspective, the situation of our workers remains deeply concerning. 
In May 2025, the International Trade Union Confederation (ITUC), the world’s 
largest trade union federation, whose primary mission is the promotion and 
defense of workers’ rights and interests, released the 12th edition of the ITUC 
Global Rights Index. In the 2025 Index, the Philippines was named as one of the 
ten worst countries for workers.3
1 Philippine Statistics Authority (April 2025). Labor Force Survey. Employment Rate in February 2025 was estimated at 96.2%. 
https://psa.gov.ph/statistics/labor-force-
survey#:~:text=Agriculture%20and%20forestry%20(%2D949,technical%20activities%20(%2D68%20thousand).
2 PhilStar Global (December 2023). Informal workers: A path to inclusive growth and prosperity. 
https://www.philstar.eom/opinion/2023/12/12/2318241/informal-workers-path-inclusive-growth-and-prosperity
3 International Trade Union Confederation (May 2025). ITUC Global Rights Index 2025. https://www.ituc-csi.org/global-rights-index- 
reports


The 1987 Constitution identifies that it is the policy of the State to ensure 
prosperity through the promotion of full employment, a rising standard of living, 
adequate social services, and an improved life for all. Under its Social Justice 
provisions, the State recognizes that workers are entitled to security of tenure, 
humane conditions of work, and a living wage towards the society that we aspire 
for.
Moreover, as part of our commitment in meeting the Sustainable 
Development Goal Target 8.8 on the protection of labor rights and the promotion 
of safe working environments by 2030, it is the primary objective of the LabCom to 
fast-track the fulfillment of this target.
As the former International Labour Organization (ILO) Director-General 
Juan Somavia argues, "reducing the decent work deficit is the quality road to 
poverty reduction and to greater legitimacy of the global economy." He added that, 
“the goal of decent work is best expressed through the eyes of the people. For 
many, it is the primary route out of poverty. For many more, it is about realizing 
personal aspirations in their daily existence and solidarity with others. And 
everywhere, and for everybody, decent work is about securing human dignity.”
Hence, this bill endeavors to accelerate the progressive realization of 
strengthening labor rights and to create a national framework where these 
constitutional guarantees are operationalized. After all, the Bible tells us, in 
Deuteronomy 24:14 (NIRV): “Don’t take advantage of any hired worker who is poor 
and needy.”
Foregoing considered: the immediate passage of this bill is sought.
ALAN PETER “COMPARERO” S. CAYETANOj^ 
PIA S. CAYETANO
FRANCIS “CHIZ” ESCUDERO


The 1987 Constitution identifies that it is the policy of the State to ensure 
prosperity through the promotion of full employment, a rising standard of living, 
adequate social services, and an improved life for all. Under its Social Justice 
provisions, the State recognizes that workers are entitled to security of tenure, 
humane conditions of work, and a living wage towards the society that we aspire 
for.
Moreover, as part of our commitment in meeting the Sustainable 
Development Goal Target 8.8 on the protection of labor rights and the promotion 
of safe working environments by 2030, it is the primary objective of the LabCom to 
fast-track the fulfillment of this target.
As the former International Labour Organization (ILO) Director-General 
Juan Somavia argues, "reducing the decent work deficit is the quaiity road to 
poverty reduction and to greater legitimacy of the global economy." He added that, 
“the goal of decent work is best expressed through the eyes of the people. For 
many, it Is the primary route out of poverty. For many more, it is about realizing 
personal aspirations in their daily existence and solidarity with others. And 
everywhere, and for everybody, decent work is about securing human dignity."
Hence, this bill endeavors to accelerate the progressive realization of 
strengthening labor rights and to create a national framework where these 
constitutional guarantees are operationalized. After all, the Bible tells us, in 
Deuteronomy 24:14 (NIRV); “Don’t take advantage of any hired workerwho is poor 
and needy. ’’
Foregoing considered; the immediate passage of this bill is sought.
ALAN PETER “COMPANERO” S. CAYETANO
PIA S. CAYOTANO
FRANCIS “CHIZ” ESCUDERO


TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
S. B. No.
104
25 JUL-3 P5-09
\
INTRODUCED BY SENATORS ALAN PETER “COMPARERO” S. CAYETANO, 
PIA S. CAYETANO, AND FRANCIS “CHIZ” ESCUDERO
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AN ACT
ESTABLISHING AN EXECUTIVE-LEGISLATIVE LABOR COMMISSION TO 
IDENTIFY KEY CHALLENGES IN THE LABOR SECTOR, PROPOSE 
SOLUTIONS FOR THE ESTABLISHMENT OF A NATIONWIDE FRAMEWORK 
FOR A LIVING WAGE, AND INSTITUTIONALIZE A NATIONAL LABOR 
ROADMAP
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
SECTION 1. Short Title. - This Act shall be known as the "Executive- 
Legislative Labor Commission (LabCom) Act of 2025."
SEC. 2. Declaration of Policy. - It is the declared policy of the State to afford 
full protection to labor, local and overseas, organized and unorganized, and 
promote full employment and equality of employment opportunities for all. It is 
likewise an established State policy to promote social justice in all phases of 
national development, enhance the rights of workers, and promote their welfare.
Towards this end, the State shall strengthen the national framework and 
policies on living wages, enhance labor protection programs, and implement 
measures aimed at improving productivity, reducing unemployment and 
underemployment, and prioritizing the needs and concerns of vulnerable and 
disadvantaged groups within the labor sector.
SEC. 3. Purpose and Objectives. - This Act shall ensure that human capital 
and labor will be at the center of the country’s socio-economic development. It 
aims to provide innovative, comprehensive, and strategic recommendations to 
address emerging and persistent issues and challenges in the labor sector.
The objectives of this Act are as follows:
a. Establish a coordinating advisory and policy-recommending body, 
composed of members of the legislative branch and the labor sector, 
including those from the worker, migrant, employer, and recruitment groups;
b. Strengthen and improve labor governance in the country and eliminate 
fragmentation of policies and programs of relevant government agencies 
related to workers’ rights, productivity, and employment opportunities; and


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c. Enhance and promote linkages among industry, business, and training 
institutions and strengthen multi-stakeholder engagements and 
consultations that will compel the adoption of fair, comprehensive, and 
evidence-based labor policies to improve labor outcomes, promote skills 
development, encourage innovation, and enhance the digital economy in the 
country.
SEC. 4. Definition of Terms. - For the effective implementation of this Act, 
the following terms are hereby defined:
(a) Equality of Employment Opportunities refers to the guarantee that all 
persons, regardless of age, sex, gender, civil status, disability, ethnicity, 
religious belief, political affiliation, or any other distinction, exclusion or 
preference, shall be accorded fair and equal access to employment, 
promotion, training, terms and conditions of work, and other employment- 
related benefits, based solely on merit and capability, with the aim of 
obtaining decent and productive work in conditions of freedom, equity, 
security and human dignity. As defined herein, the term employment 
opportunities includes access to vocational training, access to employment 
and to particular occupations, and terms and conditions of employment;
(b) Full Employment refers to an employment state wherein there is a 
promotion of "full, productive and freely chosen employment" by ensuring 
that there is: (i) work for all who are available for and seeking work; (ii) work 
which is as productive as possible; and (Hi) work freely chosen by workers, 
who should have the fullest possibility to qualify and use their skills and 
endowments in a job for which they are well suited, through improved 
manpower training, allocation and utilization;
(c) Informal Employment refers to all remunerative work that is not registered, 
regulated, or protected by existing legal or regulatory frameworks, as well 
as non-remunerative work undertaken in an income-producing enterprise;
(d) Living Wage refers to the wage level necessary to afford a decent standard 
of living for workers and their families, taking into account country 
circumstances and calculated for work performed during normal hours. For 
purposes of this Act, the wage level necessary to afford a decent standard 
of living includes the amount of family income needed to provide for the 
family’s food and non-food expenditures with sufficient allowance for savings 
or investments for social security so as to enable the family to live and 
maintain a decent standard of human existence beyond mere subsistence 
level, taking into account all of the family’s physiological, social and other 
needs;
{e) Underemployment refers to a situation wherein individuals who are 
employed express the desire and availability to work for additional hours of 
work in their present job, or to have additional job, or to have a new job with 
longer working hours, thereby resulting in economic inefficiency and 
professional underutilization;


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(f) Unemployment refers to a situation wherein individuals who are available 
for work and actively seeking employment are unable to secure gainful 
employment, excluding those voluntarily choosing not to work unless the 
reason for such is any of the following: (i) tired or believed no work available, 
i.e., the discouraged workers; (ii) awaiting results of previous job application; 
(Hi) temporary illness/disability; (iv) bad weather; and, (v) waiting for rehire 
or job recall.
SEC. 5. Establishment of the Executive-Legislative Labor Commission; 
Mandate. - The Executive-Legislative Labor Commission, hereinafter referred to 
as the LabCom, is hereby established. It shall organize itself and commence its 
mandate upon the effectivity of this Act.
The LabCom shall serve as the principal advisory body that will provide 
strategic, comprehensive, and evidence-based solutions and recommendations on 
the following labor market concerns, including, but is not limited to, general 
employment issues, trends and challenges related to skills and education, 
employment quality, wages and salaries, adequacy of social protection, and 
problems of labor governance in the country, with the primary objective of 
enhancing the right to living wages of the employment sector.
The LabCom shall refer the completed roadmap for the progressive 
realization of the right to a living wage to the Trabaho Para Sa Bayan Council, 
created pursuant to Republic Act 11962, otherwise known as the “Trabaho Para 
sa Bayan Act”, for appropriate action.
SEC. 6. Composition of the LabCom; Standing Committees. - The LabCom 
shall be composed of twelve (12) members, with four (4) members from the 
Senate; four (4) members from the House of Representatives; and four (4) 
members from the Executive branch of the government:
1. Chairperson of the Senate Committee on Labor, Employment and Human 
Resource Development, as Co-Chairperson;
2. Chairperson of the House Committee on Labor and Employment, as Co- 
Chairperson;
3. Chairperson of the Senate Committee on Economic Affairs, as Member;
4. Chairperson of the House Committee on Economic Affairs, as Member;
5. Chairperson of the Senate Committee on Higher, Technical and 
Vocational Education, as Member;
6. Chairperson of the House Committee on Higher and Technical Education, 
as Member;
7. Chairperson of the Senate Committee on Migrant Workers;
8. Chairperson of the House Committee on Overseas Workers Affairs;
9. Secretary of the Department of Labor and Employment, as Member;
10. Secretary of the Department of Trade and Industry, as Member;
11. Secretary of the Department of Economy, Planning and Development, 
as Member; and
12. Secretary of the Department of Migrant Workers, as Member.
The members of the Commission shall receive no compensation, but travel, 
communications, and other necessary expenses shall be allowed, subject to 
existing laws, and rules and regulations.


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The members of the LabCom shall establish, from among themselves, 
standing committees, to be presided over by such members or experts from multi­
sectoral groups, and engage resource persons from the public and private sectors 
as may be needed.
SEC. 7. Powers and Functions. - The LabCom shall have the following 
powers and functions;
a. Develop the country’s strategic vision and roadmap for labor and 
employment anchored on national development plans and international 
labor standards;
b. Provide a regular forum for intersectoral consultations and proposals for 
intervention to address, among others, the following: (i) the right to a living 
wage; (ii) national and regional unemployment and underemployment rates;
skills development; and (iv) skills mismatch;
c. Coordinate with government agencies, LGUs, and other relevant sectors to 
promote policy and program coherence;
d. Submit an annual State of Labor Report to the President and Congress 
containing its findings, analysis, and policy and legislative 
recommendations; and,
e. Perform other functions as may be necessary for its implementation.
SEC. 8. National Labor Roadmap. - The LabCom shall formulate and 
institutionalize a comprehensive National Labor Roadmap that shall serve as a 
strategic framework for labor development in the Philippines, which shall be 
anchored on inclusive, sustainable, and equitable labor outcomes and shall be 
aligned with the national development plans of the country.
SEC. 9. The LabCom Secretariat; Executive Director. - A Technical 
Secretariat shall be established under the administrative control and supervision 
of the LabCom. It shall be headed by an Executive Director who shall be appointed 
by the LabCom. It shall provide the LabCom with technical and administrative 
support to assist its functions under Section 6 of this Act.
The Executive Director shall have at least ten (10) years of experience and 
practice in the field of labor, human relations, and skills training to qualify for 
nomination and appointment. He or she shall work full-time and shall have the 
rank, privileges, and emoluments of an Executive Director IV (Salary Grade 29).
SEC. 10. Institute for Labor Studies (ILS)- DOLE. - The ILS shall serve as 
the research arm of the LabCom. During the Commission's existence, it shall 
produce data-based research and provide analysis to contribute to the formulation 
of labor policy and legislative recommendations.
SEC. 11. Labor Advisory Council. - The Labor Advisory Council (LAC) is 
hereby created. The LAC members shall always be present at all meetings of the 
LabCom to provide the Commission with expert assistance and advice.


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The Senate President and the Speaker of the House of Representatives 
shall choose recognized experts from the following sectors taking into 
consideration gender balance in its composition to form part of the LAC: two (2) 
members from the labor sector, with at least one member coming from the informal 
sector, two (2) members from the employer sector, two (2) members from the 
micro, small and medium enterprises, one (1) member from the migrant sector 
and one (1) from the recruitment sector.
SEC. 12. Annual Report. - The LabCom shall submit an annual report to the 
President and both houses of Congress on or before the last day of September to 
present strategic recommendations to address implementation gaps of labor 
policies in the country. The report shall also be made available to the public through 
the official online portal of the DOLE.
SEC. 13. Appropriations. - The amount necessary for the initial 
implementation of this Act shall be charged against the available appropriations of 
the Senate and the House of Representatives. Thereafter, the amount necessary 
for its continuous implementation, including any deficiency in the current year, shall 
be included in the annual General Appropriations Act, subject to existing 
budgeting, accounting, and auditing rules and regulations.
SEC. 14. Repealing Clause. - All laws, executive orders, presidential 
decrees, administrative orders, rules and regulations, issuances, or parts thereof 
inconsistent with any provision of this Act are hereby repealed or amended 
accordingly.
SEC. 15. Separability Clause. - If any provision or part of this Act is declared 
invalid or unconstitutional, the remaining parts not affected shall remain in full force 
and effect.
SEC. 16. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in at least two (2) national newspapers of 
general circulation, whichever comes earlier.
Approved,