FOURTEENTH CONGRESS OF THE REPUBLIC) 
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OF THE PHILIPPINES 
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First Regular Session 
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SENATE 
Introduced by Senator Gregorio 6. Honasan II 
EXPLANATORY NOTE 
During the last Congress a proposed legislated wage increase measure 
was filed in the Senate and House of Representatives, however, its passage has 
never materialized due to serious oppositions from the business alliance, 
employers' group and other concerned sectors. 
It was the contention of those going against the measure that the 
proposed Pf25 across-the-board salary increase per day for workers is 
unrealistic for most of the employers to provide without the end result of either 
closing shops or laying-off considerable numbers of employees. 
In the testimonies and position papers submitted by the business sector 
during the hearings conducted by Congress, they reported that given the rising 
cost of doing business, the salary increase will only bring difficulty for businesses 
to expand. High wage regime would likewise espouse gearing away from using 
labor intensive operations in the industry who will find it more cost efficient to 
resort to automation and capital-intensive technology and the use of a lean but 
highly-skilled workforce. A number of trade attaches from foreign embassies 
likewise deplored to the passage of the pending legislated wage increase during 
the last Congress claiming that their multinational firms located in the Philippines 
could be forced to relocate elsewhere in the region. 
On the part of the labor force who originally made such proposal to 
Congress, it is high time that they should be granted wage increase to enable 
them to cope with the rising cost of basic commodities brought about by erratic 
oil price hike in the world market and other related factors. In order to recoup the 
financial needs of the common workers, they are demanding that wage 
adjustment should not be lower than PI25 per day. 
While there is a common stand among stakeholders to increase the 
wages of workers, this representation believes that it is equally important that the 
beleaguering issue of the amount of wage adjustments to be granted should be 
resolved in a way that the interest of contending parties, investors and workers, 
as contemplated in their arguments, should be served equally to protect and 
preserve a balanced industrial environment for the general welfare of our nation. 
It is for the aforementioned reasons that this measure proposes that the 
wage increase to be adopted should pass through an ardent scrutiny from proper 
authorities in close consultation with all affected sectors in order to give the 
highest possible salary adjustment to benefit workers to a point where companies 


could still sustain their operations without compromising stability that could 
adversely affect the economy. 
This representation likewise believes that this piece of legislation could be 
the best alternative to the legislated wage increase measures being opposed by 
economic stalwarts during the previous Congress as this can deliver a win-win 
solution to both parties based on rigid technical study and consultations to come 
up with the most practical means of serving the interest of all. But most 
importantly, this legislation could be the best compromise to fast-track the 
implementation of a long overdue salary increase for workers. 
The immediate passage of this bill is earnest 
OR10 B. HONASAN II 
Senator 


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FOURTEENTH CONGRESS OF THE REPUBLIC) 
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OF THE PHILIPPINES 
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First Regular Session 
1 
Introduced by Senator Gregorio B. Honasan I1 
AN ACT 
REMUNERATION OF LABORERS AND EMPLOYEES IN THE PRIVATE 
SECTOR AND FOR OTHER PURPOSES 
PROVIDING FOR A DAILY ACROSS-THE-BOARD INCREASE IN THE 
Be it enacted by the Senate and the House of Representatives of the Republic of 
the Philippines in Congress assembled: 
SECTION 1 .  Declaration of Policy. - It is hereby declared to be the policy of the 
State to promote, nurture and protect the interest of the working class for them to 
endure the economic struggle brought about by the interminable upsurge in the 
cost of living; providing just and reasonable compensation to every member of 
the workforce that corresponds to their share of effort to yield productivity in the 
industry they serve thus, having a decent life to live with their family they provide 
shelter and daily sustenance. 
SEC. 2. Coverage. - All employees employed in private business 
corporation, partnership, single proprietorship including non-profit and non-stock 
organization in both agricultural and non-agricultural sector, shall be covered by 
this Act. 
SEC. 3. Salary Increase. - In order to alleviate the impact of economic 
slowdown on salaried workers, all employers in the private sector shall 
implement an across-the-board increase on the daily wage of their workers in 
the amount of One Hundred Twenty Five Pesos (P125.00) based on the 
guidelines set forth in Sec.4 of this Act. Provided, that the approved salary 
increase shall be implemented into three (3) tranche as follows: 


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a,) 40% - to be released immediately upon the effectivity of this act; 
b.) 30% - to be released no later than June the following year; and 
c.) 30% - to be released no later than June the year thereafter. 
SEC. 4. 
Basis in Granting Salary Increase - National Wages and 
Productivity Commission (NWPC) in close coordination with the National 
Economic and Development Authority and in consultation with major Employers' 
Associations and Labor Groups with national membership, shall formulate and 
rule on the amount of workers' across-the-board salary increase per day to be 
implemented by all employers not to go lower than forty percent (40%) of the 
across the board salary increase as set forth in Section 3. Provided, however, 
that the remaining sixty percent (60%) under Section 3 (b) and (c) should be 
backed by economic assumptions attesting that the effect of salary adjustments 
to be imposed would be viable to arrest inflationary effects, company closures 
and trigger rate increase of unemployment. 
SEC. 
5. 
Reportorial 
Requirements and 
Internal 
Rules and 
Regulations. - To ensure that all stakeholders will comply with the proper 
enforcement of the provisions of this Act, the Department of Labor and 
Employment (DOLE) is hereby mandated to oversee its implementation for the 
next three (3) years and shall submit to Congress report of compliance. For this 
purpose, the DOLE shall set the guidelines for the monitoring of the proper 
implementation of this Act and shall issue the necessary implementing rules and 
regulations within thirty (30) days upon its effectivity. 
SEC. 6. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette and at least two (2) national newspapers of 
general circulation. 
Approved,