TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE
S. No. 458
Z5 JUL 14 410:22
Introduced by Senator Jinggoy Ejercito Estrada
AN ACT
PROVIDING FOR A ONE HUNDRED PESOS (PIOO.OO) DAILY MINIMUM 
WAGE INCREASE FOR EMPLOYEES AND WORKERS IN THE PRIVATE SECTOR
EXPLANATORY NOTE
Article II Section 18 of the 1987 Philippine Constitution declares that, "The State 
affirms labor as a primary social economic force. It shall protect the rights of workers 
and promote their welfare." It further asserts under Article XIII Section 3 that workers 
have the right to just share in the fruits of production.
The government is mandated to alleviate the living conditions of ordinary 
Filipinos through policies that provide for a rising standard of living and improved quality 
of life, particularly of the working class by guaranteeing their right to a decent pay. At 
present, minimum wage rates in the private sector are determined and fixed by Regional 
Tripartite Wages and Productivity Boards (RTWPBs) which were created by virtue of 
Republic Act No. 6727, otherwise known as the "Wage Rationalization Act" which was 
signed into law on June 9, 1989. The same law also provided for increases in the 
minimum wage rates of workers and employees in the private sector, and thus, granted 
the last legislated wage hike in the country.
The existing socio-economic conditions of our workers and their families call for 
a daily pay hike to help alleviate their burden in the face of soaring prices of basic


commodities and rising cost of living. We cannot turn a blind eye on this injustice to 
our workers, who are considered the lifeblood of the economy.
At the same time, we should carefully balance this with the financial capacity 
of the enterprises in the country, a great majority of which are Micro, Small and 
Medium Enterprises (MSMEs). In June 2025, the Senate Economic Planning Office 
(SEPO) prepared a Briefing Note on the Employment and Inflation Impacts of Minimum 
Wage Increases. Based on an estimated 4.8 million minimum wage workers 
nationwide, a PIOO.OO wage hike will result to an estimated job losses ranging from 
103,000 to 258,000 while a P200.00 wage hike will result to an estimated job losses 
ranging from 206,000 to 517,000, depending on how sensitively employers respond 
to higher wages. The most impacted sectors include construction, manufacturing, and 
wholesale and retail trade. The SEPO briefer further elaborates the impact of wage 
increases as follows: "Depending on elasticity assumptions, the unemployment rate 
could increase by 0.2 to 1.02 percentage points. These short-term labor market 
impacts may compound existing challenges in labor absorption, particularly in sectors 
reliant on low-wage employment. Using input-output analysis, SEPO estimates that 
the proposed PIOO.OO and P200.00 minimum wage hike could result in an increase in 
inflation rate by 0.6 - 1.0 percentage point respectively. Low-income households are 
often hit hardest by rising prices, as they spend a larger proportion of their income on 
necessities, potentially eroding any gains from the wage increase if the resulting 
inflation is substantial."
Despite these possible consequences, there is a need to enact a law that will 
increase the rates of minimum wage earners, in the hope of attaining our goal of 
reducing poverty incidence rate in the coming years to have a prosperous, 
predominantly middle-class society where no one is poor" by 2040. Under the 
Philippine Development Plan, the government is targeting to reduce the poverty 
incidence rate to 13.2% by 2025, and to 9% by 2028.1
1 Jocson, L. "PHL confident it will bring down poverty rate to 9% by 2028," 27 July 2023. BusinessWorld.
httDs://www. bwnrldonrme.com/toD-stories/2023/07/27/536188/phl-confident-it-will-bring-down-poverty-
rate-to-9-bv-2028/


This measure proposes a PIOO.OO increase in the daily rate of ail minimum 
wage workers in the country. It includes a provision on the correction of wage 
distortion to ensure that workers who are not minimum wage earners will not be 
disadvantageously affected by the said increase. This statutory increase, if passed 
into law, will also result in increased purchasing power and wili stimulate economic 
activity, thereby contributing to national growth.
It is acknowledged that even with this proposed increase, the difference 
between the minimum wage and the cost of living—or the family living wage—will 
remain giaring. But this is the most reasonable rate that can be proposed, balancing 
the welfare of workers and businesses.
This bill was reported out by the Committee on Labor, Employment, and Human 
Resources Development in the 19th Congress and was approved on Third Reading in 
plenary.
The immediate passage of this biil is recommended.
INGSOY EJERCITO ESTRADA


TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE
S. No. 458
25
14 AlU '22
Introduced by Senator Jinggoy Ejercito Estrada
AN ACT
PROVIDING FOR A ONE HUNDRED PESOS (PIOO.OO) DAILY MINIMUM 
WAGE INCREASE FOR EMPLOYEES AND WORKERS IN THE PRIVATE SECTOR
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
1 
Section 1. Short Title. - This Act shali be known as the "PlOO Daily Minimum
2 
Wage Increase Act.
3 
Sec. 2. Declaration of Policy. - It is the policy of the State to alleviate the living
4 
conditions of the ordinary Filipino through policies 
that provide for a decent and
5 
humane standard of living and improved quality of iife, particularly of the working
6 
class by ensuring the right of iabor to its just share in the fruits of production, to
7 
guarantee the workers' right to a living wage, and to promote social justice through
8 
the adoption of measures calculated to ensure the well-being and economic security
9 
of ail the members of the community.
10 
Sec. 3. Wage Increase. - The daily rate of all minimum wage workers in the
11 
private sector, regardless of employment status, including those in contractual and
12 
subcontractual arrangements, whether agricultural or non-agricultural, shall be
13 
increased by One hundred pesos (PIOO.OO) upon the effectivity of this Act. Nothing
14 
in this Act shali prevent the respective Regional Tripartite Wages and Productivity
15 
Boards to grant additional increases to the workers and empioyees on the basis of
16 
their determination pursuant to Republic Act No. 6727, otherwise known as the "Wage
17 
Rationalization Act", as amended.


1 
Sec. 4. Correction of Wage Distortion. - Where a wage distortion occurs as a
2 
result of the increase in minimum wage under this Act, the employer and the union,
3 
or the employer and the workers, in the absence of a union, shall negotiate to correct
4 
the distortion in accordance with the provisions of Article 124 of Presidential Decree
5 
No. 442 or the "Labor Code of the Philippines", as amended, and other existing laws,
6 
rules and regulations.
7 
Sec. 5. Non-Chargeabiiity of Prior Increases. - No wage increase shall be
8 
credited as compliance with the increase prescribed herein unless expressly provided
9 
under valid collective bargaining agreements: Provided, That such wage increase was
10 
granted in anticipation of the minimum wage increase under this Act: Provided,
11 
further, That where such increase is less than the prescribed increase under this Act,
12 
the employer shall pay the difference. Such increases shall not include anniversary
13 
wage increases, merit wage increases and those resulting from the regularization or
14 
promotion of employees.
15 
Sec. 6. Non-Diminution of Other Benefits. - Nothing in this Act shall be
16 
construed to reduce any existing allowance and benefit of any form under existing
17 
laws, decrees, issuances, executive orders, and any contract or agreement between
18 
workers and employers.
19 
Sec. 7. Inspection hy the Department of Labor and Empioyment (DOLE). - The
20 
DOLE shall conduct inspection of payroll and other financial records kept by the
21 
company or business to determine whether the workers are paid the prescribed
22 
minimum wage increase and other benefits granted by law. The said inspection may
23 
take place at any time of the day or night, whenever work is being undertaken. In
24 
unionized companies, the DOLE inspectors shall always be accompanied by the
25 
president or any responsible officer of the recognized bargaining unit or of interested
26 
union in the conduct of the inspection. In non-unionized companies, establishments
27 
or businesses, the inspection should be carried out in the presence of a workers'
28 
representative.
29 
Sec. 8. Penaities. - Any person, corporation, trust, firm, partnership,
30 
association or entity violating any provision of this Act shall be punished by a fine of
31 
not less than Fifty thousand pesos (P50,000.00) but not more than One hundred
32 
thousand pesos (P100,000.00) plus moral damages for each affected worker and the


1 
costs of litigation including attorney's fees, or imprisonment of not less than two (2)
2 
years nor more than four (4) years, or both at the discretion of the court: Provided,
3 
That if the violation is committed by a corporation, trust or firm, association or any
4 
other entity, the penalty of imprisonment shall be imposed upon the entity's
5 
responsible officers including, but not iimited to, the president, vice president, chief
6 
executive officer, general manager, managing director or partner.
7 
The employer concerned shall be ordered to pay an amount equivalent to
8 
double the unpaid benefits owing to the employees: Provided, That the payment of
9 
indemnity shall not absolve the employer from the criminal liability imposable under
10 
this Act: Provided, further. That any person convicted under this Act shall not be
11 
entitled to the benefits provided for under the Probation Law.
12 
In case a fine and/or indemnity is decreed by the National Labor Relations
13 
Commission (NLRC) against person/s who violated the provisions of this Act and
14 
cannot be immediately satisfied because of the refusal to pay, or in case of the
15 
unavailability or inadequacy of funds, the bank deposits, financial interests and other
16 
personal property not capable of manual delivery in the possession or control of third
17 
parties of the owner in case of sole proprietorship or the assets of the corporation,
18 
association or any other entity, shall be garnished. If such properties are not enough,
19 
movable and immovable properties may be levied to fully satisfy the imposed fines
20 
and/or indemnities.
21 
Failure on the part of any corporation, trust or firm, partnership, association or
22 
any other entity to comply with the provisions of this Act shall be a ground for non-
23 
renewal of business permits.
24 
Sec. 9. Construction in Favor of Labor. - All doubts in the implementation and
25 
interpretation of the provisions of this Act, including its implementing rules and
26 
regulations, shall be resolved in favor or iabor.
27 
Sec. 10. Impiementing Ruies and Reguiations. - The Secretary of Labor and
28 
Employment shall promulgate the necessary rules and regulations for the effective
29 
implementation of this Act.
30 
Sec. 11. Separabiiity Ciause. - If any provision or part hereof is held invalid or
31 
unconstitutional, the remainder of the law or the provision or part not otherwise
32 
affected shall remain valid and subsisting.


1 
Sec. 12. Repealing Clause. - Any law, presidential decree or issuance, executive
2 
order, letter of instruction, administrative order, rule, or regulation contrary to or
3 
inconsistent with the provisions of this Act are hereby repeaied, modified, or amended
4 
accordingiy.
5 
Sec. 13. Effectivity. - This Act shall take effect fifteen (15) days following the
6 
completion of its publication either in the Official Gazette or in a newspaper of general
7 
circulation.
Approved,