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Republic of the Philippines 
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HOUSE OF REPRESENTATIVES 
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Quezon City 
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EIGHTEENTH CONGRESS 
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Third Regular Session 
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HOUSE BILL No.  ________ 
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___________________________________________________________________________ 
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Introduced by 
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BAYAN MUNA Representatives FERDINAND R. GAITE, 
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CARLOS ISAGANI T. ZARATE and EUFEMIA C. CULLAMAT,  
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ACT TEACHERS Party-List Representative FRANCE L. CASTRO,  
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GABRIELA Women’s Party Representative ARLENE D. BROSAS 
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and KABATAAN Party-List Representative SARAH JANE I. ELAGO 
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AN ACT  
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PROVIDING PHP 3,000 MONTHLY INFLATION ADJUSTMENT ALLOWANCE 
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FOR ALL GOVERNMENT WORKERS AND APPROPRIATING FUNDS 
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THEREFOR 
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EXPLANATORY NOTE 
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Government workers are in the frontline of government services provision, with or without 
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pandemic. Like the workers in private sector and the Filipino public, government workers suffered 
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from the effects of the COVID-19 pandemic. 
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Bound by their sworn duties, government workers performed their tasks to provide  government 
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services for the people despite being exposed to risks of the pandemic. According to the Civil 
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Service Commission, as of July 7, 2021, at least 90,739 employees have contracted the COVID-19 
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resulting to 1,283 deaths. Yet, not all workers were adequately supported by the government.  As 
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the employer, the government has the responsibility to promote the welfare, assure health and 
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safety, and provide the needs of government workers. 
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Article II Section 18 of the Constitution provides that “the State affirms labor as a primary social economic 
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force. It shall protect the rights of workers and promote their welfare.” 
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Further, Article XIII Section 3 of the Constitution provides that “…They shall be entitled to security of 
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tenure, humane conditions of work, and a living wage…” 
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The COVID-19 pandemic provided additional hardship and expenses to government workers. 
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Employees were required to wear personal protective equipment (PPEs) and practice all the 
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minimum health protools. However not all were provided free PPEs, mass testing and treatment. 
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Free transportation and accomodation were likewise not provided for all, even during the 
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Enhanced Community Quarantine when public  transportation were very limited. Worse, many 
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job oprders (JOs) and contract of service (COS) workers lost their jobs during the pandemic as a 
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result of non-renewal of contracts and suspension of projects. 
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The inflation, hitting 4.5 percent in April 202, was worsened by the pandemic and reduced 
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economic activity. This is the same rate recorded in March 2021 and 2.3 percentage points higher 
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compared to the previous year. Inflation eroded the purchasing power of the peso by at least PhP 
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100 daily for minimum wage earners. 
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Needless to say, the situation made life for low-income government workers and their families 
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more difficult. 
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Even before the pandemic, government workers were already complaining of inadequate salaries. 
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The current PhP 12,034 minimum salary for government workers is a far cry from the family living 
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wage of Php 33,570 per month (or Php 1,119 per day) for a family of six. 
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According to the International Labour Organization (ILO) Global Wage Report 2020-21. 
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Wages and minimum wages in the time of COVID-19, “the Minimum Wage Fixing Convention, 
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1970 (No. 131), stipulates that, to maintain their relevance, minimum wages should be “adjusted from time to 
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time” (Article 4). Failure to do so may lead to an erosion of the purchasing power of workers who earn the minimum 
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wage when prices of goods and services are rising, or to more wage inequality when the general level of wages is 
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increasing more rapidly than the minimum wage.” 
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Government workers continue to push for PhP 16,000 per month national minimum wage. In the 
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immediate however, they are calling for additional allowances to help them to cope with the 
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COVID-19 pandemic and high inflation rate in our country. While not at par with what is 
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considered as the “living wage”, the proposed PhP 3,000 monthly inflation adjustment allowance 
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is meant to compensate the decline in purchasing power and to help ease the impact of the 
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COVID-19 pandemic. 
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The PhP 3,000 monthly inflation adjustment allowance to all government workers will not only 
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help them to tide over these difficult times but will also inspire them to continually provide and 
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enhance the provision of government services for our people. 
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Thus, the immediate passage of this bill is earnestly sought. 
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Approved, 
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REP. FERDINAND R. GAITE 
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Bayan Muna Partylist 
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REP. CARLOS ISAGANI T. ZARATE 
REP. EUFEMIA C. CULLAMAT 
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Bayan Muna Partylist 
Bayan Muna Partylist 
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REP. FRANCE L. CASTRO 
REP. ARLENE D. BROSAS 
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          ACT Teachers Partylist 
      GABRIELA Women’s Party 
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REP. SARAH JANE I. ELAGO 
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Kabataan Partylist 
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Republic of the Philippines 
1 
HOUSE OF REPRESENTATIVES 
2 
Quezon City 
3 
4 
EIGHTEENTH CONGRESS 
5 
Third Regular Session 
6 
7 
HOUSE BILL No.  ___ 
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___________________________________________________________________________ 
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Introduced by 
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BAYAN MUNA Representatives FERDINAND R. GAITE, 
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CARLOS ISAGANI T. ZARATE and EUFEMIA C. CULLAMAT,  
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ACT TEACHERS Party-List Representative FRANCE L. CASTRO,  
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GABRIELA Women’s Party Representative ARLENE D. BROSAS 
14 
 and KABATAAN Party-List Representative SARAH JANE I. ELAGO 
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AN ACT  
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PROVIDING PHP 3,000 MONTHLY INFLATION ADJUSTMENT ALLOWANCE 
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FOR ALL GOVERNMENT WORKERS AND APPROPRIATING FUNDS 
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THEREFOR 
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Be it enacted by the Senate and House of Representatives of the Republic of the Philippines in Congress assembled: 
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SECTION 1. Short Title – This Act shall be known as the “Php 3,000 Monthly Inflation 
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Adjustment Allowance Act”. 
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SECTION 2. Declaration of Policy – It is hereby declared the policy of the State to alleviate the 
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living condition of government workers and to guarantee their right to a living wage. The State 
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shall protect and promote the rights and welfare of workers in the public sector. 
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SECTION 3. Provision of Monthly Inflation Adjustment Allowance – An amount equivalent 
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to Three Thousand Pesos (PhP 3,000) per month which shall be called Monthly Inflation 
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Adjustment Allowance. shall be given to all government workers regardless of employment status. 
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The inflation adjustment allowance shall be given in addition to existing allowances and benefits 
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provided to government workers under existing laws and regulations. 
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SECTION 4. Coverage – The Inflation Adjustment Allowance prescribed in this Act shall apply 
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to all government workers regardless of their position, designation, status and salary grade level. 
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These will include all permanent, casual, temporary, appointive, Job Orders (JOs) and Contract of 
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Service (COS) workers. 
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SECTION 5. No Diminution of Benefits – Nothing in this Act shall be construed to reduce 
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any existing allowances and benefits of any form under existing laws, decrees, executive orders, 
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issuances, rules and regulations. 
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SECTION 6. Sources of Fundings – The amount necessary for the initial implementation of 
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this Act for the year 2021 shall be sourced from: 
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(a)
Savings generated by the different departments, bureaus, offices and agencies of the
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government from the General Appropriations Act (GAA) FY 2021: 
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i. 
For NGAs, including SUCs, the amount required shall be charged against the available 
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released Personnel Services (PS) allotments of the respective agencies under FY 2021 
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General Appropriations Act (GAA). 
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ii. 
For GOCCs, the amount required shall be charged against their respective approved 
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corporate operating budgets (COBs) for FY 2021. 
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iii. 
For Legislative and Judicial Departments, the amount required shall be charged against 
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the available released allotments of their respective agencies. 
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iv. 
For the LGUs, the amount required shall be charged against their respective FY 2021 
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local government funds. 
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v. 
For Local Water Districts (LWDs), the amount required shall be charged against their 
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respective BOD-approved FY 2021 COBs. 
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(b) 
Savings from Republic Act No. 11494, otherwise known as “Bayanihan to Recover as One 
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Act”; 
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(c) 
Unobligated and unutilized funds from the Barangay Development Program (BDP) of the 
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National Task Force to End Local Communists Armed Conflict (NTF ELCAC); 
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(d) 
Unused appropriation for debt servicing: Notwithstanding any law to the contrary, the 
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President of the Philippines may direct the discontinuance of unutilized automatic 
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appropriations for the debt service and use the savings generated therefrom to augment 
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allocation for the purpose of this Act; and  
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(e) 
Unused funds from foreign loans provided for government’s wage subsidy and social 
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protection programs. 
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Provided that, for the succeeding years, the amount necessary shall be included in the annual 
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General Appropriations Act. 
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SECTION 7. Separability Clause – If any provisions of this Act is declared invalid or 
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unconstitutional, other provisions hereof which are not affected thereby shall continue to be in 
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full force and effect. 
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SECTION 8. Repealing Clause – All laws, decrees, orders, issuances, rules and regulations or 
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part thereof inconsistent with the provisions of this Act are hereby repealed, amended or modified 
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accordingly. 
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SECTION 9. Effectivity Clause –This Act shall take effect within fifteen (15) days after its 
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publication in the Official Gazette or in at least two (2) newspapers of general circulation, 
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whichever comes earlier. 
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Approved, 
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