t 
THIRTEENTH CONGRESS OF THE REPUBLIC 
First Regular Session 
) 
1 
) 
5 
RAY 30 P5 :39 
OF THE PHILIPPINES 
L A  :I 
S E N A T E  
%ECEIL'ED 8'4 : 
2830 
Senate Bill No. 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
The unabated increase in the prices of basic commodities, coupled with the 
ongoing increases in deregulated oil and automatic adjustments in rates of 
utilities such as electricity and water, among others, has continuously brought to 
the fore the perennial problem of the Filipino workers on how to make both ends 
meet. Given the continuous erosion of purchasing power, the Filipino workers, 
especially the minimum wage earners, are subsisting on inadequate income. 
According to a study conducted by an independent research organization, the 
minimum wage has not improved compared to the cost of living in the last 
decade. Based on the data of The National Wages and Productivity Commission 
(NWPC), the cost of living for a family of six in the National Capital Region is 
around P15,300.00 a month, or P510.00 per day. The present minimum wage, 
however, is only P250.00 a day for non-agricultural workers and an even at a 
lower amount of P213.00 for agricultural workers. The gap, therefore, between 
the minimum wage and cost of living ranges from a low of P260.00 to a high of 
P297.00. 
This bill proposes a One Hundred Peso (PI 00.00) across-the-board increase 
which aims to partially restore the lost purchasing power in real value of the 
workers wage over the last decade and would somehow close the gap between 
the income of minimum wage earners and the daily-cost-of-living. The proposed 
wage hike, as demanded by the workers, would bring minimum wages to within 
61% to 68% cost of living estimates. Although the proposed P100.00 hike is still 
insufficient, it is substantial enough to raise the quality of life of 16 million workers 
and their dependents. 
It is the duty of the government to give rational and effective solution to the 
various economic predicaments of our country to keep its poor citizens off the 
streets and to partially fill the empty bellies of more than 40% of the populace. 
The demand for wage hike is a socio-economic concern that should be 
immediately addressed. 
In the light of the urgency of enacting a measure that would provide our workers 
with a living wage rightfully due them, the approval of this bill is earnestly sought. 


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THIRTEENTH CONGRESS OF THE REPUBLIC 
) 
) 
5 RAY 30 P 5 3 9  
OF THE PHILIPPINES 
First Regular Session 
1 
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S E N A T E  
REcCEIvEn BY: 
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2030 
Senate Bill No. 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
THE SALARY RATES OF EMPLOYEES AND WORKERS IN THE PRIVATE 
SECTOR AND FOR OTHER PURPOSES 
Be if enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
PROVIDING FOR A P100.00 DAILY ACROSS-THE-BOARD INCREASE IN 
SECTION I. Declaration of Policy. It is hereby declared to be the policy 
of the State to guarantee the worker's right to a living wage and ensure the right 
of labor to its just share in the fruits of production which will alleviate the living 
condition of the Filipino family through policies that will provide for a decent and 
humane standard of living and improved quality of life, particularly of the working 
class. 
SEC. 2. In line with the declared policy under this Act, all employers in the 
private sector, whether agricultural or non-agricultural, regardless of 
capitalization and number of employees shall pay their workers an across-the- 
board wage increase on the sum of One Hundred Pesos (P100.00) a day upon 
the effectivity of this Act. 
SEC. 3. No wage increase shall be credited as compliance with the 
increase prescribed herein unless expressly provided under valid collective 
bargaining agreements; Provided, That such wage increase was granted in 
anticipation of the legislated across-the-board wage increase under the Act; and, 
Provided further, That where such increase is less than the prescribed increase 
under this Act, the employer shall pay the difference. Such increases shall not 
include anniversary wage increases, merit wage increases and those resulting 
from the regularization or promotion of employees. 
SEC. 4. 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 or agreement between workers and 
employers. 
SEC. 5. The Department of Labor and Employment (DOLE) shall, after 
approval of this Act, conduct inspection of the payroll and other financial records 
kept by the company or business to determine whether the workers are paid the 


prescribed across-the-board wage increase and other benefits granted by law. In 
unionized companies, DOLE inspector shall always be accompanied by the 
president or any responsible officer of the recognized bargaining unit or of any 
interested union in the conduct of the inspection. In non-unionized companies, 
establishments or businesses, the inspection should be carried out in the 
presence of a worker representing the workers in the said company. The 
workers’ representative shall have the right to submit his own findings to DOLE 
and to testify on the same if he cannot concur with the findings of the labor 
inspector. 
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SEC. 6. Any person, corporation, trust, firm, partnership, association, or 
entity violating any provision of this Act shall be punished by a fine of not less 
than Twenty five thousand pesos (P25,OOO.OO) nor more than One hundred 
thousand pesos (P100,OOO.OO) or imprisonment of not less than two (2) years nor 
more than four (4) years, or both such fine and imprisonment 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, but not limited to, 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. 7. Implementing Rules and Regulations. The Secretary of Labor 
and Employment shall promulgate the necessary rules and regulations to 
implement this Act. 
SEC. 8. Separabilify Clause. If any provision or part of this Act, or the 
application thereof to any person or circumstance is held invalid or 
unconstitutional, the remainder of this Act or the application of such provision or 
part thereof to other persons or circumstances, shall not be affected thereby. 
SEC. 9. Repealing Clause. 
All laws, orders, issuances, rules and 
regulations or part thereof inconsistent with the provisions of this Act are hereby 
repealed, amended, or modified accordingly. 
SEC. I O .  Effectivity. This Act shall take effect within fifteen (15) days 
after its publication in the Official Gazette or in at least two (2) newspapers of 
general circulation, whichever comes earlier. 
Approved,