FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
Senate Bill No. 
4 3 ~j 
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) 
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INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
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 the 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. 
Senator 


FIFTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
Senate Bill No. 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
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 9rder. - 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,