FOURTEENTH CONGRESS OF THE REPUBLIC 
) 
First Regular Session 
1 
OF THE PHILIPPINES 
) 
7 JUL -3 
'!> \ 
I 
SENATE 
S.B. No. 
613 
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 Order 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 
Hence, early passage of this bill is fervently sought. 
to the State's assurance of a decent wage. 
J s 
GO 
JERCITOESTRADA 
-Senator 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
I2 
13 
14 
15 
16 
17 
II r .r 1 
FOURTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
1 
7 JUL -3 
1 1  J 
First Regular Session 
) 
SENATE 
S.B. No. 613 
Introduced by Sen. Jinggoy Ejercito Estrada 
"AN ACT 
THE SALARY RATES OF EMPLOYEES AND WORKERS IN THE PRIVATE 
SECTOR AND FOR OTHER PURPOSES." 
PROVIDING FOR A P125.00 DAILY ACROSS-THE-BOARD INCREASE IN 
Be i f  enacted by fhe Senate and 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 declared 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; 
2 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
(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 
employers. 
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 
nonunionized 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. 
3 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
SEC. 1. 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 (PIOO, 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. 
4 


1 
Approved, 
5