SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
) 
) 
) 
Senate Bill No. __ 
1_9_'(_" 0 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
'13 
NOV 27 P 3 :20 
ItECEIVEI> HY;f-
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 seeks to require ihe Regional Boards to issue Wage Orders 
annually, preferably on or before May 1 (Labor Day) of each year, or to issue a 
detailed explanation why such Wage Order cannot be issued. It is expected that 
this measure shall make the Regional Boards more transparent and accountable 
to the sectors they serve. Hence, the immediate passage of this bill is therefore 
earnestly solicited. 
OY EJERCITO ESTRADA 
Senator 


SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
Senate Bill No, 1970 
) 
) 
) 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
'13 
NOV 27 P 3 :20 
AMENDING ARTICLE 123 OF PRESIDENTIAL DECREE NO. 442, AS 
AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE 
PHILIPPINES, BY REQUIRING THE REGIONAL BOARD TO ISSUE A WAGE 
ORDER EVERY YEAR OR AN EXPLANATION FOR NOT ISSUING SUCH 
WAGE ORDER 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Article 123 of Presidential Decree No; 442, as amended, 
otherwise known as the Labor Code of the Philippines, is hereby amended to 
read as follows: 
"ART. 123. Wage Order. - Whenever conditions in the region 
so warrant, AND ONCE EVERY YEAR STARTING MAY 1, 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. Any 
such Wage Order shall take effect after fifteen (15) days from its 
complete publication in at least one (1) newspaper of general 
circulation in the region. THE REGIONAL BOARD SHALL ISSUE 
SUCH WAGE ORDER ON OR BEFORE MAY 1 OF EVERY YEAR. 
"IN LIEU OF A WAGE ORDER, THE REGIONAL BOARD, 
ON OR BEFORE MAY I OF EVERY YEAR, SHALL PUBLISH IN 
AT LEAST ONE (1) NEWSPAPER OF GENERAL CIRCULATION 
IN THE REGION ITS DETAILED EXPLANATION FOR NOT 
ISSUING A WAGE ORDER. 
"In the performance of its wage-determining functions, the Regional 
Board shall conduct public hearings/consultations, giving notices to 
employees' and employers' groups, provincial, city and municipal 
officials and other interested parties. "Any party aggrieved by the 
Wage Order issued by the Regional Board may appeal such order 
to the Commission within ten (10) calendar days from the 
publication of such order. It shall be mandatory for the Commission 
to decide such appeal within sixty (60) calendar days from the filing 
thereof. 
"The filing of the appeal does not stay the order unless the person 
appealing such order shall file with the Commission, an undertaking 
with a surety or sureties satisfactory to the Commission for the 


payment to the employees affected by the order of the 
corresponding increase, in the event such order is affirmed." 
SEC. 2. This Act shall take effect fifteen (15) days after its complete 
publication in the Official Gazette or in at least two (2) national papers of general 
circulation, whichever comes earlier. 
Approved,