FIFTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
)" 
, 
SENATE 
Senate Bill No. 812" 
'"" 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
The Constitution guarantees our workers with a decent wage. This 
promise, however, has remained elusive for the great majority of the country's 
workforce because their real salaries and wages have significantly shrunk due 
to inflation and the depreciation of the Peso. 
The Labor Code was amended by RA 6727 creating the National 
Wages and Productivity Commission and the Regional Tripartite Wages and 
Productivity Boards allowing for the determination and fixing of minimum 
wage rates applicable to the various regions, provinces or industries therein. 
Article 123 of the Labor Code provides that, whenever conditions in the region 
so warrant, the Regional Board shall investigate and study all pertinent facts; 
and based on the standards and criteria herein prescribed, shall proceed to 
determine whether a Wage Ord,er should be issued. 
However, the labor sector has often criticized the Regional Boards for 
their delayed reaction to the conditions of their respective regions, and their 
slow action on. petitions for minimum wage increase, so much so that the 
labor sector is now demanding that Congress reverts back to the old system 
of legislated wage increases. 
This bill addresses the plight of the working class by bringing them 
closer to the State's assurance .. of a decent wage. Hence, early passage of 
this bill is fervently sought. 
Senator 


FIFTEENTH CONGRESS OF THE REPUBLIC) 
..•.. 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
Sen,ate Bill No. 812 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
PROVIDING FOR A P125.00 DAILY ACROSS-THE-BOARD INCREASE IN 
THE SALARY RATES OF EMPLOYEES AND WORKERS IN THE PRIVATE 
SECTOR ANp FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled: 
SECTION 1. This Act shall be known as "The P125.00 Daily-Across-the 
Board Wage Increase Act. " 
SEC. 2. It is hereby declqred to be the policy of the State to alleviate the 
living conditions of the ordinary Filipino through pOlicies that provide for a decent 
and humane standard of living and improved quality of life, particularly of the 
working class; to ensure the right of labor to its just share in the fruits of 
production; to guarantee the workers' right to a living wage; and to promote social 
justice through the adoption of measures calculated to ensure the well-being and 
economic security of all the members of the community, 
SEC. 3. In line with the declared policy under this Act, all employers in the 
private sector, whether agricultural or nonagricultural, regardless of capitalization 
and number of employees shall pay their workers an across-the-board wage 
increase in the sum of One hundred twenty-five pesos (P125.00) a day to be paid 
in the following manner: 
(a) Upon the effectivity of this Act, an additional Forty-five pesos (P45.00) 
a day; 
(b) The year thereafter, an additional Forty pesos (P40.00) a day; and 
(c) On the third year, the remaining amount of Forty pesos (P40.00) a day 
shall be added. 
SEC. 4. No wage increase shall be credited as compliance with the 
increase prescribed herein unless expressly provided under valid collective 
bargaining agreements: Provided, That such wage increase was granted in 
anticipation of the legislated across-the-board wage increase under this Act: 
Provided further, That where such increase is less than the prescribed increase 
under this Act, the employer shall pay the difference. Such increases shall not 
include anniversary wage increases, merit wage increases and those resulting 
from the regularization or promotion of employees. 
SEC. 5. Nothing in this Act shall be construed to reduce any existing 
allowance and benefit of any form under existing laws, decrees, issuances, 
executive orders and any contract or agreement between workers and 
emolovers. 


• 
SEC. 6. The Department of Labor and Employment (DOLE) shall, after 
approval of this Act, conduct inspection of the payroll and other financial records 
kept by the company or business to determine whether the workers are paid the 
prescribed across-the-board wage increase and other benefits granted by law. In 
unionized companies, the DOLE inspectors shall always be accompanied by the 
president or any responsible officer of the recognized bargaining unit or of any 
interested union in the conduct 'of the inspection. In non unionized companies, 
establishments or businesses, the inspection should be carried out in the 
presence of a worker representing the workers in the said company. The 
workers' representative shall have the right to submit his own findings to the 
DOLE and to testify on the same if he cannot concur with the findings of the labor 
inspector. 
SEC. 7. Any person, corporation, trust, firm, partnership, association or 
entity violating any provision of this Act shall be punished by a fine of not less 
than Twenty-five thousand pesos (P25,000.00) nor more than One hundred 
thousand pesos (P100, 000.00) or imprisonment of not less than two years nor 
more than four years, or both such fine and imprisonment at the discretion of the 
court: Provided, That if the violation is committed by a corporation, trust or firm, 
association or any other entity, the penalty of imprisonment shall be imposed 
upon the entity's responsible officers including, but not limited to, the president, 
vice president, chief executive officer, general manager, managing director or 
partner. 
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. Provided further, that any person convicted under this Act shall 
not be entitled to the benefits provided for under the Probation Law. 
SEC. 8. The Secretary of Labor and Employment shall promUlgate the 
necessary rules and regulations to implement this Act. 
. 
SEC. 9. If any provision or. part of this Act or the application thereof to any 
person or circumstance is held invalid or unconstitutional, the remainder of this 
Act or the application of such provision or part thereof to other persons or 
circumstances shall not be affected thereby. 
SEC. 10. All laws, orders, issuances, rules and regulations or parts thereof 
inconsistent with the provisions of this Act are hereby repealed, amended or 
modified accordingly. 
SEC. 11. This Act shall take effect within fifteen (15) days after its 
publication in the Official Gazette or in at least two newspapers of general 
circulation, whichever comes earlier. 
Approved,