Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

‘TWENTIETH CONGRESS
First Regular Session

HOUSE BILL No._766

Introduced by
AKBAYAN Representatives
Percival V. Cendafia, Jose Manuel Tadeo “Chel” I. Diokno, and Dadah Kiram Ismula,
and Dinagat Islands Representative Kaka J. Bag-ao

EXPLANATORY NOTE

Article XII, Section 1 of the 1987 Constitution directs Congress to “give the highest priority
to the enactment of measures that protect and enhance the right of all the people to human dignity,
reduce social, economic, and political inequalities, and remove cultural inequities by equitably
diffusing wealth and political power for the common good.” Additionally, Section 3 of the same
Article mandates the State to “afford full protection to labor, local and overseas, organized and
unorganized, and promote full employment and equality of employment opportunities for all.”
Fundamental to fulfilling this mandate is ensuring that workers receive a just and living wage.

According to the 2023 official report of the Philippine Statistics Authority (PSA), a family of
five needs at least PhP 13,873 per month to mect theit minimum basic food and non-food needs."
However, many regions report even higher than average poverty thresholds. In the National Capital
Region (NCR) for instance, the poverty threshold is PhP 15,713, roughly translating to an estimated
PhP 523.76 per day per family. While the figures report the official poverty threshold statistics of the
PSA, they only represent the bare minimum for survival, and do not reflect the standards of a
dignified, decent standard of living”

Outside of NCR, minimum wage rates for the non-agriculture sector range from PhP 336 to
PhP 560, and from PhP 316 to PhP 520 for the agriculture, service or retail, and manufacturing
sectors.’ Effective 18 July 2025, the minimum wage rates in NCR will be PhP 695 for the non-
agriculture sector and PhP 658 for the other sectors.* While these figures may appear to surpass basic
poverty thresholds in NCR, they fall far short of covering the broader costs associated with decent

{Philippe Statice Anthoxiy (15 August 2020, 11 ot 18 Rape Rcd Signt Dara i Port Inn in 2023
hnttps://psa.gov.ph/content/11-out-18-regions-recorded-significant-decreases-poverty.incidence-

2023#:~:text=Poverty*%20 Threshold, poverty’20threshold%20at"%20PhP%2012%2C241.

2 Desiderio, L. (17 August 2025). NEDA: Poverty thresbold not budget for decent ling, in The Philippine Star
‘https:/ /www philstar.com/business/2024/08/17/2378381 /neda-poverty-threshold-not-budget-<lecent-living

3 National Wages and Productivity Commission. Summary of Current Regional Daily Minimum Wage Rates by Region, Now-
Arriba end Api ip mpeg mammary of cretion dynam ge eg ao a

Nona Wages and Productivity Commiion (30 June 2025). Press Release on Wage Onder No, NCR-26.
https:/ /awpe.dole.gov-ph/ner-wage-board-grants-%E2%82%B150-daly-minimum-wage-increase/


housing, education, healthcare, transportation, and other essential needs. The reality is that many
workers earning the minimum wage continue to live paycheck to paycheck ~ struggling to afford a
basic but dignified quality of life.

The minimum wage rates have simply not kept pace with the rising cost of living. Inflation
and successive price hikes in food, utilities, and transportation, among other goods and services, have
continuously eroded the purchasing power of workers, leaving many Filipino families struggling to
meet their daily needs despite full-time employment.

It has been over thirty years since a national minimum wage hike was legislated through
Republic Act No. 6727 ot the Wage Rationalization Act. Although the same law thereafter empowers
Regional Tripartite Wages and Productivity Boards (RIWPBs) to set minimum wages in each region,
the disparity in wage levels across regions and the varied periodic adjustments have widened the gap
between wages and the cost of living. Meanwhile, prices for essential goods and services have risen
and continue to rise, leaving wage growth far behind.

This bill, which was approved on third and final reading by the House of Representatives
during the 19" Congress, proposes to increase the minimum daily wage rate of workers in the private
sector, regardless of employment status, by Two hundred pesos (PhP 200.00). The institutionalized
substantial increase in income is necessary to allow our workers to survive through the successive
increases in prices of basic goods and services.

Our workers are the backbone our economy. They deserve a raise that recognizes their value
and that keeps up with the rising costs of living,

In view of the foregoing, the immediate passage of this bill is earnestly sought.

PERCIVAL ¥. ue

iA
: _, Akbayan Representative
Josi (UEL TADEO DAD IRAM ISMULA
“ ” I, DIOKNO Akbayan Representative
Akbayan Representative

Dinagat Tslands Representative


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL No. _766

Introduced by
AKBAYAN Representatives
Percival V. Cendafia, Jose Manuel Tadeo “Chel” I. Diokno, and Dadah Kiram Ismula,
and Dinagat Islands Representative Kaka J. Bag-ao

AN ACT
PROVIDING FOR A TWO HUNDRED PESOS (P200.00) DAILY WAGE INCREASE
FOR MINIMUM WAGE WORKERS IN THE PRIVATE SECTOR

Beit enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

SECTION 1. Short Title. ~This Act shall be known as the “Wage Hike for Minimum Wage Workers
Ad”.

SEC. 2. Declaration of Policy. ~It is a 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 by ensuring 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. Minimum Wage Increase. - Upon the effectivity of this Act, the daily rate of all
minimum wage workers in the private sector, regardless of employment status, including those in
contractual and sub-contractual arrangements, whether agricultural or nonagricultural, shall be
increased by Two hundred pesos (P200.00) per day.


Nothing in this Act shall prevent the respective Regional Tripartite Wages and Productivity Boards
from granting additional increases to the workers and employees, as may be determined in
accordance with their mandate under Republic Act No. 6727, otherwise known as the “Wage
Rationalization Act”, as amended.

SEC. 4. Incentives to Small Enterprises. —To assist in their compliance with the ‘wage increase,
small enterprises may avail of incentives from the Department of Labor and Employment
(DOLE), subject to the implementing rules and regulations of this Act.

SEC. 5. Non-diminution of other benefits. - 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 ot agreement between workers and employers.

SEC. 6, Existing Exemptions, - As provided by Republic Act No. 9178, also known as the
“Barangay Micro Business Enterprises (BMBE’s) Act of 2002,” the BMBEs shall be exempt from the
coverage of the Minimum Wage Law. Further, as provided by Republic Act No. 6727, also known
as the “Wage Rationalization Act?” and relevant rules of the National Wages and Productivity
Commission, the following establishments may apply for exemption ftom compliance with the
minimum wage increase as ptovided by this Act: (@) retail or service establishments regularly
employing not more than ten (10) workers; and (b) establishments adversely affected by natural
calamities orhuman-induced disasters.

SEC. 7. Penalties. - Any person, corporation, trust, fitm, partnership, association, ot entity
violating any provision of this Act shall be punished by a fine of not less than One hundred thousand
pesos (100,000.00) nor more than Five hundred thousand pesos (500,000.00) or imprisonment of
not less than two years nor more than four years, or both 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 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 the 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. Implementing Rules and Regulations.— Within sixty (60) days fom the effectivity of
this Act, the DOLE shall, in coordination with other relevant government agencies, promulgate the
necessary rules and regulations for the effective implementation of this Act.

SEC. 9. Separability Clause. - If any provision or part of this Act is declared invalid or
unconstitutional, the remaining provisions or parts of this act shall remain in full force and effect,

and the application of such provision to other persons or circumstances shall not be affected.
SEC. 10. Repealing Clause. All laws, orders, issuances, rules, and regulations o patts thereof
inconsistent with the provisions of this Act are hereby repealed, amended, or modified

accordingly.

SEC. 11. Effectivity. ~ This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or in a newspaper of general circulation.

Approed,