REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
‘Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House Bill No. Stes

Introduced by
Pangasinan 5 District Representative HON. RAMON V. GUICO III &

——_Cagnyan 3" District Representative HON, JOSEPH "JOJO" L. LARA

EXPLANATORY NOTE.

With the National Capital Region (NCR), the center of trade and commerce in the country,
placed under Enhanced Community Quarantine (ECQ) together with the whole of Luzon, daily
business operations had either been severely reduced or totally disrupted. As a consequence, many
Filipinos have gone out of work and thousands had since returned or bas been constantly trying to
return to their home provinces. These developments had highlighted to 2 great extent two of the
‘most pressing issues of the country: the extreme congestion of Metro Manila, which most certainly,
exacerbated the spread of COVID-19; and the dismal lack of job opportunities in many regions
outside the NCR.

In response to this emerging reality and in anticipation of the “new normal” post-pandemic.
the government touled the program as the panacea both 10 the deunh of
opportunities in the provinces and the increasingly claustrophobic metropolis. It would be no
exaggeration to say thatthe program is gaining traction in all levels of government and even among
the general population, which in itselfis a moral victory, but its success in practice would depeid
‘on how the government can make employment in the provinces appealing enough so that people
would not unly choose to stay there, but be better off because of it

One of the reasons why many Filipinos opt to brave the perils of moving to Metro Manila
is the glaring disparity between the wages paid in the capital region and those of the other regions.
‘Simply put, staying in the provinces just doesn't pay enough considering the rising costs of living
in the country. The system of regional wage boards was supposed to rationalize the wages across
the regions, it was meant to respond to evolving economic realities and adjust wage rates so
workers remain fairly compensated, but the realities on the ground offer a different perspective.
To illustrate, as of March 2020, the current real minimum wage rate for NCR is at P449.75 in the
non-agriculture sectors; and for both plantation and non-plantation agriculture, the rate is at
418.76, For BARMM, which is one of the country's poorest regions, the rate is at 251.94 for non-
agriculture and 232.56 for both plantation and non-piantation agriculture. The difference between
the region’s respective wage rates is almost double and a similar trend can be observed when
looking across the current minimum wage rate board. Furthermore, it can also be inferred from
such a trend that the regions with the lowest minimum wage rates are also the poorest and most
underperforming. Add the fact that there is not any statistically significant variation between the


‘market prices of basic commodities between the regions and the effectiveness and the very purpose
of the regional wage boards will now crumble in full.

More importantly Filipino workers, regardless of where they are stationed, shall not feel as
if the value of their labor is less than that of another. Work in Metro Manila and between any other
Province in particular are both important undertakings eritical to national and local development
and should therefore be compensated fairly and equally.

The Balik Probinyya program is certainty a worthwhile endeavor and while, without a
shadow of « doubt, there are plenty of moving parts to assemble for this program to truly work.
this proposed legislation will steer the program in the right direction. With the government set to
roll out megs infrastructure projects throughout the country, it would be timely to provide for a
‘general minimum wage for all regions—capitalizing on the fact that many of our workers had
Tetumed to their hometowns. No longer will they be compelled to leave again, since the
government's programs sball entice them to stay.

As such, under thiswAtt; the Regional Tripartite Wages Productivity Board is hereby
abolished, establishing in its stead a general minimum wage rate for all regions, the amount of
Which will be pegged on the current minimum wage rate for the National Capital Region through
& wage order issued at the tims ofthe Act's effectivity, In isu of the RTWPB, the National Wages
Productivity Commission shall undertake an expanded role with the issuance of wage orders to
adjust the general minimum wage rate every three (3) years, provided that the general minimum
‘wage rate shall not be adjusted lower than the amount prescribed by the ission in the initi
wage order the Commission will issue upon the effectivity of this Act. Moreover, the National
‘Tripartite Conférence shall hereby play 2 more critical role in the adjustment of the genial
‘minimum wage. Finally, stiffer penalties are to be imposed for those who shall violate the law.

{In view of the foregoing, the immediate approval of this measure is earnestly sought.

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REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House Bill No,__6668

==
Pangasinan 5" District Representative HON. RAMON V. GUICO III &
ran 3™ District HON. JOSEPH "JOJO" L. LARA

AN ACT
ESTABLISHING A GENERAL MINIMUM WAGE RATE FOR PRIVATE SECTOR
WORKERS AMENDING FOR THIS PURPOSE PRESIDENTIAL DECREE NO. 442,
OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES, AS
AMENDED z

Be it enacted by the Senate and Hause of Reprexemotrves of the Philippines in Congress
assembled,
SECTION 1. Shoreiile. - This Act shall be known as the “General Minimum Wage

SEC. 3, Chapter Il, Article 99 of the Labor Code of the Philippines is hereby amended to
follows:

“ART. 99. [Regional] GENERAL Minimum Wage(s]. — The GENERAL
minimam wage [rates} for AT. agricultural and non-agricultural employees and
workers in each and every region of the country shall be {those} THAT prescribed
by the (Regional Tripartite Wages and Productivity Board] THE NATIONAL
WAGES PRODUCTIVITY COMMISSION.”

SEC. 4. Chapter V, Article 121 of the Labor Code of the Philippines is hereby amended to
read as fattows

“KKX


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(© To [prescribe] ADOPT rules and guidelines for the determination of THE
appropriate GENERAL minimum wage and productivity measures [at the
regional, provincial, or industry levels};

(d) To [review regional wage levels set by the Tripartite Wages and Productivity
Boards to] determine [if these are] AND FIX, IN ACCORDANCE WITH THE
COMMISSION'S GUIDELINES AND NATIONAL DEVELOPMENT
PLANS, THE GENERAL MINIMUM WAGE AND ISSUE THE
CORRESPONDING WAGE ORDERS EVERY THREE (3) YEARS.

(©) xxx

[( To review plans and programs of the Regional Tripartite Wages and
Productivity Boards to determine whether these are consistent with national
development pians.}

[(@) To exercise technical and administrative supervision over the Regional
Tripartite Wages and Productivity Boards.]

{(b)] (F) To cali, {from time to time] EVERY THREE (3) YEARS, a national
tripartite conference of representatives of government, workers, and employers for
i of ADJUSTING THE AMOUNT OF THE GENERAL

'AGE [and], INCLUDING MEASURES WHICH PROMOTE
PRODUCTIVITY AND THE WELFARE OF WORKERS AND
EMPLOYEES: and

[G] (G) To exercise such powers and functions as may be necessary to implement
this Act.

Xxx’

SEC. 5. Abolition of the Regional Tripartite Wages and Productivity Board. ~ Article
122 of the Labor Code of the Philippines is hereby repealed. The Regional Tripartite Wages and
Productivity Boards (RTWPB) created by virtue of Republic Act No. 6727, otherwise known as
the Wage Rationalization Act is hereby abolished.

SEC. 6. Chapter V, Article 123 of the Labor Code of the Philippines shall hereby be
amended to read as follows:

“ART. 123. Wage Order. - [Whenever conditions in the region so warrant,] [t]The
COMMISSION shall investigate and study all pertinent facts IN THE
DELIBERATIONS OF THE TRI-ANNUAL NATIONAL TRIPARTITE
CONFERENCE; and based on the standards and criteria herein prescribed
EXAMINE WHICH AMOUNT OF THE GENERAL MINIMUM WAGE
CAN SUITABLY CONTRIBUTE TO PROVIDING WORKERS WITH AN
APPROPRIATE MINIMUM LEVEL OF PROTECTION CONSIDERING


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read as

PREVAILING ECONOMIC CONDITIONS, TO ENABLING FAIR AND

FUNCTIONING

JEOPARDIZING EMPLOYMENT. WHEN SETTING THE GENERAL
MINIMUM WAGE, THE COMMISSION SHALL SUBSEQUENTLY BE
GUIDED BY COLLECTIVE BARGAINING DEVELOPMENTS. Any such
Wage Order SHALL BE ISSUED EVERY THREE (3) YEARS AND shall take
effect after fifteen (15) days from its complete publication in at least one (1)
newspaper of general circulation [in the region).

[In the performance of its wage-determining functions, the Regional Board shall
conduct public hearings/consultations, giving notices to employees’ and
Sear Bates rovinclal, city, end sounicipal officials and other interested
parties.

Any party aggrieved by the Wage Order issued by the (Regional Board]

may appeal such order to the Commission within ten (10)
saicndar days from the publication of such order. It shall be mandatory for the
Commission to decide such appeal within {sixty (60)] THIRTY (30) calendar days
from the filing thereof.

xxx”

+ 7. Chapter V, Article 124 of the Labor Code of the Philippines is hereby amended to
follows:

“ART. 124, Standards/Criteria for Minimum Wage Fixing. - The {regional}
GENERAL minimum wage[s} to be established [by the Regional Board] shall be
4s {uearly] adequaie as is economically feasible to maintain the minimum standards
on Mi

(a) The demand for [living wages) A FAMILY WAGE;


(b) (Wage adjustment vis-a-vis the consumer price index] THE NEED TO SAVE.
A SMALL MARGIN OF INCOME FOR SOCIAL SECURITY AND
EMERGENCIES;

(c) {The cost of living and changes or increases therein] WAGE ADJUSTMENT
VIS-A-VIS THE CONSUMER PRICE INDEX;

(4) COST OF LIVING AND CHANGES OR INCREASES THEREIN;

(e) The need to {induce industries to invest] ENCOURAGE WORKERS TO
WORK WITH EFFICIENCY AND EXCELLENCE;

(2) Improvements in standards of living:

itg)] The prevailing wage ieveis;)

(G) Fair return of the capital invested and capacity to pay of employers;

(H) Effects on employment generation and family income; and

@) The equitable distribution of income and wealth along the imperatives of

economic and social development.

[The wages prescribed in accordance with the provisions of this Title shall be the
standard prevailing minimum wages in every region. These wages shall include

bargaining
agreement and, if it remains unresolved, through voluntary asbitration. Unless
otherwise agreed by the parties in writing, such dispute shall be decided by the
voluntary arbitrators within ten (10) calendar days from the time said dispute was
referred to voluntary arbitration.

xxx"

SEC. 8. Amount of the General Minimum Wage. - Upon effectivity of this Act, the
‘Commission shall issue a wage order, which will be effective fifteen (15) days after its publication
in two (2) newspapers of general circulation, regarding the adjustment of the minimum wage to
reflect that of the current real minimum wage for the National Capital Region (NCR.) Thereafter,


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the COMMISSION shall issue wage orders with respect to the adjustment of the amount of the
general minimum wage every three (3) years. Provided, That subsequent adjustments of the
general minimum wage shall not be lower the amount prescribed by the Commission in the initial
‘wage order it will issue upon the effectivity of this Act.

No part of this Act shall be construed as to prejudice other wage increases through
Paes

or downsizing as a response to the payment of wage increases arising from the establishment of
the general minimum wage shall be held in violation of the law and be penalized accordingly.

SEC. 10. Penalties. ~ Section 12 of Republic Act No. 6727, as amended by Republic Act
No. 8188 is hereby fisrther amended to read as follows:

“Section 12. Any person, corporation, trust, firm, parmership, association, o entity

PESOS
(P130,000.00) nor more than [One hundred thousand pesos (P100,000.00)}
THREE HUNDRED THOUSAND PESOS (P300,000,00) and imprisonment of
not less than two (2) years nor more than four (4) years[, or both such fine and
imprisonment at the discretion of the court]. Provided, That any person convicted
under this Act shall not be entiticd to the benefits provided under the Probation
Law.

‘The employer concerned shall be ordered to pay an amount equivalent to double
the unpaid benefits owing to the employees: Provided, That payment of indemnity
shall not absolve the employer from the criminal liability imposable under this Act

FURTHERMORE, THE BUSINESS PERMIT OF THE VIOLATING
ENTITY SHALL BE SUSPENDED FOR A PERIOD OF SIX (6) MONTHS,
FOR THE FIRST OFFENSE; ONE (1) YEAR FOR THE SECOND
OFFENSE; AND THE REVOCATION OF THE OFFENDER'S BUSINESS
PERMIT ON THE THIRD AND FINAL OFFENSE.

pe
SEC. 11. Repealing Clause. — Al! laws, decrees, executive orders or parts thereof
inconsistent with the provisions of this Act is hereby repealed or modified accordingly.

SEC. 12, Separability Clause, ~ If any part or provision of this Act is declared invalid or
unconstitutional, the other parts not otherwise affected shall remain in full effect and force.


1 SEC. 13, Effectivity. ~ This Act shall take effect fifteen (15) days after its complete
2 publication in at least two (2) newspapers of general publication.

Approved,