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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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Second Regular Session 
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HOUSE BILL No.  ________ 
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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 A P100 DAILY WAGE SUBSIDY IN DAILY MINIMUM WAGES OF 
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WORKERS IN THE PRIVATE SECTOR AND FOR OTHER PURPOSES 
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EXPLANATORY NOTE 
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The Philippine economy plunged into its lowest point since 1946, suffering its first recession in 29 
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years. The country's unemployment rate rose to 8.8% in February, higher than the 8.7% last 
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January, reflecting the scars in the labor market brought about by the coronavirus pandemic. The 
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figure in the labor force survey (LFS) is equivalent to 4.2 million jobless Filipinos in February, 
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higher than the 4 million unemployed in January. The underemployment rate or the percentage of 
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the population with jobs but are looking for more work stood at 18.2%, equivalent to 7.9 million 
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individuals. This is higher than the 16% in January, which is translated to 6.6 million people. 
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While those who still have work witness the real value of their wages crumble in the face of 
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inflation rates driven up by the high prices of basic commodities and services that include food, 
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transportation, electricity and water. Clothing, shelter, education and healthcare – all of which 
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should be basic necessities seem to have become a luxury for the poor and a privilege of a few. 
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It has been three decades since the approval of Republic Act No. 6727 or the Wage Rationalization 
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Act of 1989. Hundreds of Wage Orders have been issued by the Regional Tripartite Wages and 
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Productivity Boards (RTWPBs) yet not a single one granted any real wage that is sufficient to cover 
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the basic needs of workers and their families. 
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The P537.00 minimum wage in the metro is now practically worth only P434.00, or a loss of about 
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P100.00 in real-value, making it the lowest real wage in over eight-in-a-half years or 103 months. 
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This amount becomes even more incongruous if compared to the estimated decent family daily 
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living wage which is pegged at Php1,057.00. 
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In February 2021, low-income families or the bottom 30 percent of Filipino households 
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experienced a 5.5 percent inflation rate, worse than the 4.7 percent that affected the general 
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population. 
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Amidst this economic crunch, government assistance for the poor is wanting. 
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While still in the middle of the pandemic, the Duterte government has refused to allot enough 
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money to continue its cash assistance programs. This mistake in prioritization has been exposed 
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as key cities were put back into lockdown in March. Cash assistance was a meager P1,000.00 
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equivalent to P71/day which was clearly insufficient to tide families over the two-week strict 
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lockdown and a week of the less stringent modified lockdown. The low amount was worsened 
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further by low distribution rates, with only 8 percent of beneficiaries receiving the money after 
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more than 2 weeks. 
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The rise in cost of commodities, the ongoing health crisis, and the overall economic hardships as 
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a result of the pandemic-induced recession would continue to make life for minimum wage earners 
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and their families extra difficult. While adding a P100 daily wage subsidy presented by this measure 
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(just to recover the amounts lost due to inflation) is nowhere near the family living wage, it is by 
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all means a necessary step to alleviate hardships on the part of both workers and micro, small, 
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medium-sized enterprises (MSMEs) hit hard by successive lockdowns and the decline in people’s 
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purchasing power. With a view of pushing for substantial wage increase in the mid-term, this P100 
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daily wage subsidy bill seeks to provide relief in the interim by enforcing a law that would allow 
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the government to subsidize P100 worker’s daily wages for three (3) consecutive months. Such an 
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increase will boost consumer demand and stimulate commercial activity especially among MSMEs 
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which in turn will allow them to continue the wage increase on a more permanent basis moving 
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forward.  
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Without aid and meaningful wage increase our labor force faces a bleak future ahead of them. 
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In view of the foregoing, 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 
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Quezon City 
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EIGHTEENTH CONGRESS 
5 
Second 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 A P100 DAILY WAGE SUBSIDY IN DAILY MINIMUM WAGES OF 
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WORKERS IN THE PRIVATE SECTOR AND FOR OTHER PURPOSES 
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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. Title. This Act shall be known as the “P100 Daily Wage Subsidy Act.” 
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SECTION 2. Declaration of Policy. It is hereby declared the policy of the State to “…protect 
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and enhance the right of all people to human dignity, reduce…political inequalities, and remove 
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cultural inequities by equitably diffusing wealth and political power for the common good (Section 
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1, Article XIII, 1987 Philippine Constitution). Workers shall be “…entitled to…a living 
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wage…(Section 3, ibid.,). 
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Pursuant thereto the government shall address the massive joblessness and the sharp decline in 
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real wages caused by rising inflation, business closures, and persistent lockdowns in Metro Manila 
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and other urban centers across the country. 
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SECTION 3. Definition of terms—For the purposes of this act, the term: 
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a.
Daily Minimum Wage shall refer to the statutory minimum wage paid to workers on a
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daily basis in the private sector regardless of employment status, position, industry,
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enterprise size, mode of payment and region.
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b. Living Wage shall refer to the acceptable standard of wages by which “workers and their
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families should be able to afford a basic, but decent lifestyle that is considered acceptable
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by society at its current level of economic development. Workers and their families should
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be able to live above the poverty line and be able to participate in social and cultural life,”
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as defined by the International Labour Organization.
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SECTION 4. Coverage. –The wage subsidy prescribed in this Act shall apply to all workers and 
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employees in the private sector in their respective regions regardless of their position, designation 
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or status, and irrespective of the method by which their wages are being paid. 
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While not at par with what is considered “living wage”, the P100 daily wage subsidy is meant to 
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compensate for the decline in real wages and address the worsening poverty and widening social 
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inequalities including the uneven development between regions of the country taking into 
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consideration the impact of pandemic-induced lockdowns particularly among micro, small, 
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medium-sized enterprises (MSMEs). The nationwide daily wage subsidy will also improve the 
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quality of life of all workers while contributing to economic pump-priming as the purchasing 
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power of workers are enhanced.   
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The sum of Ninety Three Bilion Six Hundred Million Pesos (Php 93,600,000,000.00) shall 
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be allotted for this purpose to cover twelve (12) million private workers. 
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SECTION 5. Increase in the Daily Minimum Wage. —The government through the 
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Department of Labor and Employment (DOLE) shall provide for the P100 daily wage subsidies 
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in the private sector for three (3) months upon enactment of this law.  
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SECTION 6. No Reduction of the Daily Minimum Wage—In no case shall the amount of the 
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Minimum Wage be reduced to the updating thereof pursuant to this law. 
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SECTION 7. No Diminution of Benefits—Nothing in this Act shall be construed to reduce any 
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existing allowances and benefits of any form under existing laws, decrees, issuances, executive 
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orders, and/or under any contract or agreement between workers and employers. 
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SECTION 8. Penalties—Any person, corporation, trust, firm, partnership, association or entity 
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which refuses or fails to pay any of the prescribed daily wage subsidies or adjustments in the wage 
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rates made in accordance with this Act shall be punished by a fine not less than Five Hundred 
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Thousand Pesos (P500,000.00) and/or imprisonment of not less than one (1) year nor more than 
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two (2) years. 
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SECTION 9. Sources of funding— The amount necessary for the effective implementation of 
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this Act shall be sourced from the funds of the National Task Force to End Local Communist 
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Armed Conflict upon its realignment in accordance with the pertinent provisions of the 2021 
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General Appropriations Act (GAA), and from unobligated and unreleased funds from the FY 
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2020 and FY 2021 budget of the Department of Social Welfare and Development (DSWD), and 
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from the Contingent Fund of the 2021 GAA.  
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SECTION 10. 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 11. Repealing Clause—All laws, orders, issuances, rules and regulations or part 
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thereof inconsistent with the provisions of this Act are hereby repealed, amended or modified 
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accordingly. 
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SECTION 12. 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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