Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

NINETEENTH CONGRESS
First Regular Session

House Bill No.3308

Introduced by HON. JOSEFINA B. TALLADO

AN ACT ESTABLISHING A NATIONAL MINIMUM WAGE RATE FOR PRIVATE SECTOR
WORKERS AMENDING FOR THIS PURPOSE PRESIDENTIAL DECREE NO. 442, OTHERWISE
KNOWN AS THE LABOR CODE OF THE PHILIPPINES, AS AMENDED

EXPLANATORY NOTE

Laborers are not treated equally in terms of compensation as the rate differs from one region or
province to another despite the reality. The wage disparity among laborers working the same kind or
‘mount of work but situated in different regions is evident when one looks at the prevailing Minimum
Wage Rale across the country

To illustrate, below is the table of the present Minimum Wage Rate as of August 1, 2022, posted
in the National Wage and Productivity Commission’

[REGION TMINIMUM WAGE RATE (Range
depending on industry or location)
Php 533.00 — Php 570.00
fc _ ~__ | Php 400.00 _
{ Region 4 Php 372.00 - Php 400.00 =
Region Il ~~ Php 375.00 Php 400.00
Region Ill | Php 344.00 — Php 460.00
Region IV-A ~~ | Php 350.00 — Php 470.00 _|
Region IV-B Php 329.00 — Php 355.00 _
[ Region V Php 365.00
[Region Vi ___ | Php 410.00 Php 450.00 -
[ Region Vil Php 382.00 — Php 435.00
[Region VIN | Php 345.00 Php 375.00
| Region IX ~~] Php 338.00 ~ Php 351.00
Region X ~~ | Php 378.00 — Php 405.00 ~
| Region XI Php 438.00-Php 443.00
Region X



[ Region Xi [Php 350.00 ~]
BARMM ~____| Php 306.00 - Php 341.00 4

‘This wage disparity becomes even absurd when you come to terms with the fact that a worker
in aprogressive cily ike Legaspi in Albay will receive a minimum wage of Php366,00 while his counterpart
in Manila receiving Php570.00. Much more so when you consider the wide disparity between someone
working in the Bangsamoro Autonomous Region in Muslim Mindanao who receives a meager Php305.00
while his counterpart in the nearby Region XIll gets Php350.00.

More so, a worker in the Municipality of Caluag in Quezon is entitled to a minimum wage rate of
hp429.002 whereas in the neighboring town of Santa Elena in Camarines Norte, a similar worker wil
only get Php335.00°. Note that Caluag and Santa Elena are neighboring border towns of Region (V-A
and Region V but despite the proximity the workers do not receive the same rate

‘The problem also arise when one lives in the National Capital Region, say Valenzuela City, but
works in neighboring town of Obando or Meycauayan in Bulacan. While he lives in Metro Manila, the
wages he will receive is only Php450,00* because he happens to work in Region Il which has a diferent
wage schedule compared to those in NCR,

Dignity in work becomes a farcical concept when you discriminate a worker through disparity in
wages

itis in this light that this humble representation seeks @ National Minimum Wage rate across
regions. Consequently, we seek the abolition of the Regional Tripartite Wages Productivity in as much
‘6 it wil become moot once a national minimum wage is determined by the National Wages and
Productivity Commission

In view of the foregoing, the immediate approval of this measure is.eamestly sought.
HON. JOSEFINA 8, TALLADO

Representative
18 District , Camarines Norte



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

NINETEENTH CONGRESS
First Regular Session

House Bill 0.33.08

Introduced by HON. JOSEFINA B. TALLADO

AN ACT ESTABLISHING A NATIONAL MINIMUM WAGE RATE FOR PRIVATE SECTOR WORKERS
AMENDING FOR THIS PURPOSE PRESIDENTIAL DECREE NO. 442, OTHERWISE KNOWN AS THE
LABOR CODE OF THE PHILIPPINES, AS AMENDED

Beit enacted by the Senate and House of Representatives ofthe Philippines in Congress assembled,
SECTION 1, Short Tile. - This Act shall be known as the “National Minimum Wage Act of 2022."

SECTION 2. Declaration of Policy. -The 1987 Philippine Constitution, particularly, Section 3 of Article
XIII entitles workers to security of tenure, humane conditions of work, and a living wage. In recognition of
this, itis hereby declared a policy of the State to ensure worker’ right to a living wage and humane conditions
of work by obliterating regional wage disparities and improving workers’ ving standards throughout all the
regions of the country

SECTION 3. In light of the declared policy, Article 99 of the Labor Code of the Philippines is hereby
amended to read as follows:

“ART. 99. [Regional] NATIONAL Minimum Wage(s}. - The NATIONAL minimum wage
[rates] for agricultural and non-agricultural employees and workers in each and every region
of the country shall be [those] THAT prescribed by the [Regional Tripartite Wages and
Productivity Board) THE NATIONAL WAGES PRODUCTIVITY COMMISSION.”

SECTION 4. Article 121 of the Labor Code of the Philippines is hereby amended to read as follows:
“KK

(c) To prescribe rules and guidelines for the determination of THE appropriate GENERAL
minimum wage and productivity measures [at the regional, provincial, or industry levels};

(d) To [review regional wage levels set by the Tripartite Wages and Productivity Boards to]
determine [if these are} AND FIX, IN ACCORDANCE WITH THE COMMISSION'S


1 GUIDELINES AND NATIONAL DEVELOPMENT PLANS, THE GENERAL MINIMUM

20 WAGE AND ISSUE THE CORRESPONDING WAGE ORDERS EVERY THREE (3) YEARS.
a (2) xxx

2 [(9 To review pians and programs ofthe Regional Tripartite Wages and Productivity Boards
3B to determine whether these are consistent with national development plans.)

4 {(q) To exercise technical and administrative supervision over the Regional Tripartite Wages
25 and Productivity Boards.)

%6 {tty} (F) To call, {fom time to time] EVERY THREE (3) YEARS, a national tripartite
7 conference of representalives of government, workers, and employers for the deliberation
28 of ADJUSTING THE AMOUNT OF THE GENERAL MINIMUM WAGE and}, INCLUDING
29 MEASURES WHICH PROMOTE PRODUCTIVITY AND THE WELFARE OF WORKERS
0 AND EMPLOYEES; and

31 {(] (G) To exercise such powers and functions as may be necessary to implement this Act.
32 x00

RB SECTION 5. Abolition of the Regional Tripartite Wages and Productivity Board. ~ Article 122 of the
34 Labor Code of the Philippines is hereby repealed. Consequently, the Regional Tripartite Wages and
35 Productivity Boards (RTWPB) created by virtue of Republic Act No. 6727, otherwise known as the Wage
36 Rationalization Act is hereby abolished

37 SECTION 6. Chapter V, Article 123 of the Labor Code of the Philippines shall hereby be amended
38 toread as follows:

"ART. 123. Wage Order. - [Whenever conditions in the region so warrant {The
COMMISSION shall investigate and study all pertinent facts IN THE DELIBERATIONS OF
THE NATIONAL TRIPARTITE CONFERENCE; and based on the standards and criteria
herein prescribed SCRUTINIZEW WHICH AMOUNT OF THE NATIONAL MINIMUM WAGE
CAN SUITABLY CONTRIBUTE TO PROVIDE WORKERS WITH AN APPROPRIATE
MINIMUM LEVEL OF PROTECTION CONSISTENT WITH PREVAILING ECONOMIC
CONDITIONS, TO ENABLE FAIR AND FUNCTIONING CONDITIONS OF COMPETITION,
AND TO PRESERVE EMPLOYMENT. WHEN SETTING THE GENERAL MINIMUM WAGE,
THE COMMISSION SHALL SUBSEQUENTLY BE GUIDED BY COLLECTIVE
BARGAINING DEVELOPMENTS. Any such Wage Order SHALL BE ISSUED EVERY
THREE (3) YEARS AND shall take effect after fifteen (15) days from its complete publication
in at least one (1) newspaper of general circulation [in the region].

THE COMMISSION SHALL REGULARLY EVALUATE THE IMPACT OF THE NATIONAL
MINIMUM WAGE IN RESPECT OF THE PROTECTION OF WORKERS, CONDITIONS OF
COMPETITION, EMPLOYMENT WITH REGARD TO CERTAIN INDUSTRIES AND
REGIONS, AS WELL AS PRODUCTIVITY. THE COMMISSION SHALL FURNISH THE

5

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OFFICE OF THE PRESIDENT OF THE PHILIPPINES AS WELL AS BOTH HOUSES OF
CONGRESS A REPORT OF ITS FINDINGS EVERY THREE (3) YEARS.

[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] COMMISSION 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)) THIRTY (30) calendar days from the fling thereof.

rot”

SECTION 7. Chapter V, Article 124 of the Labor Code of the Philippines is hereby amended to read

“ART. 124, StandardsICriteria for Minimum Wage Fixing. - The [regional] NATIONAL
minimum wage{s} to be established [by the Regional Board] shall be (as nearly] THAT WAGE
WHICH IS adequate AND as is economically feasible to maintain the minimum standards of
living necessary for RAISING THE FAMILY AND MAINTAINING ITS DECENT EXISTENCE,
PROMOTE the GOOD health, efficiency, FULFILLMENT and general well-being of the
employees within the framework ofthe nalional economic and social development program.
In the determination of such NATIONAL minimum wage, THE COMMISSION shall, among
other relevant factors, consider the following:

(a) The COST FOR PROVIDING THE FOOD, SHELTER, CLOTHING, EDUCATION,
HEALTH AND OTHER SIMILAR NECESSITIES FOR RAISING A FAMILY;

(b) [Wage adjustment vis-a-vis the consumer price index] THE NECESSITY TO SAVE A
SMALL MARGIN OF INCOME FOR SOCIAL SECURITY AND EMERGENCIES:

(c) {The cost of living and changes or increases therein] WAGE ADJUSTMENT VIS-A-VIS
THE CONSUMER PRICE INDEX;

(A) COST OF LIVING AND CHANGES OR INCREASES THEREIN;

{e) The need to [induce industries to invest} ENCOURAGE WORKERS TO WORK
EFFICIENTLY AND NATIONAL STANDARDS;

(Improvements in standards of living

{(g)] The prevailing wage levels;]

(G) Fair return of the capital invested and capacity to pay of employers;

(H) Effects on employment generation and family income; and

(|) The equitable distribution of income and wealth along the imperatives of economic and

social development

[The wages prescribed in accordance with the provisions ofthis Tile shall be the standard
prevailing minimum wages in every region. These wages shall include wages varying with
industries, provinces or locaities ifn the judgment of the Regional Board, conditions make
‘such local differentiation proper and necessary to effectuate the purpose of this Title}


Any person, company, corporation, partnership or anyother entity engaged in business shal
fie and register annualy with the [appropriate Regional BoardJREGIONAL OFFICES OF
THE DEPARTMENT OF LABOR AND EMPLOYMENT and the [National Statistics Office]
PHILIPPINE STATISTICS AUTHORITY, an itemized isting of their labor component,
specifying the names of their workers and employees below the managerial level, including
leatners, apprentices and disabled/handicapped workers who were hired under the terms
prescribed in the employment contracts, and their coresponding salaries and wages

Where the application of any prescribed wage increases by virtue of a law or wage order
issued by [any Regional Board) THE COMMISSION results in distortions of the wage
structure within an establishment, the employer and the union shall negotiate to correct the
distortions, Any dispute arising from wage distortions shall be resolved through the
gfievance procedure under their collective bargaining agreement and, if it remains
unresolved, through voluntary arbitration, Unless otherwise agreed by the parties in writing,
such dispute shall be decided by the voluntary arbitrators within ten (10) calendar days from
the time said dispute was referred to voluntary arbitration.

xx"

SECTION 8. Amount of the National Minimum Wage. - Upon effectivity of this Act, the Commission
shall issue a wage order, which wil be effective fifteen (15) days after its publication in two (2) newspapers
of general circulation, regarding the adjustment of the minimum wage to reflect that of the current real
minimum wage for the National Capital Region (NCR) Thereafter, he COMMISSION shal issue wage orders
with respect to the adjustment of the amount ofthe general minimum wage every three (3) years. Provided,
That subsequent adjustments of the general minimum wage shall not be lower the amount prescribed by the
Commission in the initial wage order it wil issue upon the effectivity ofthis Act.

No part of this Act shall be construed as to prejudice other wage increases through collective
bargaining

SECTION 9, Credible Wage Increase. No wage increase arising from collective bargaining
agreements shall be credited as compliance with the increases prescribed under the Act

SECTION 10. Prohibitions on Layoffs and Downsizing, - It shall be unlawful for any private company,
corporation, partnership, or any other private entity engaged in business that will resort to laying-off workers
or downsizing as a response to the payment of wage increases arising from the establishment ofthe national
minimum wage. Any violation of the law shall be penalized accordingly,

SECTION 11. Penalties. - Section 12 of Republic Act No. 6727, as amended by Republic Act No.
8188 is hereby further amended to read as follows.

“Section 12. Any person, corporation, trust, firm, partnership, association, or entity which
refuses or fails to pay their workers the national minimum wage set herein and any of the
succeeding legislated wage increases of adjustments with this Act shall be punished by a
fine of not less than [Twenty-five thousand pesos (P25,000.00)] ONE HUNDRED
THOUSAND PESOS (P100.000.00) nor more than {One hundred thousand pesos
(P100,000,00)] FIVE HUNDRED THOUSAND PESOS (P500,000.00) and imprisonment of


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not less than two (2) years nor more than FIVE (5) years, or both such fine and imprisonment
at the discretion of the cour]. Provided, That any person convicted under this Act shall not
be entitled to the benefits provided under the Probation Law,

The employer concerned shall be ordered to pay an amount equivalent to double the unpaid
benefits owing to the employees: Provided, That payment of indemnity shall not absolve
the employer from the criminal liability imposable under this Act,

FURTHERMORE, THE BUSINESS PERMIT OF THE VIOLATING ENTITY SHALL BE
SUSPENDED FOR A PERIOD OF SIX (6) MONTHS FOR THE FIRST OFFENSE; ONE (1)
YEAR FOR THE SECOND OFFENSE; AND THE REVOCATION OF THE OFFENDER'S
BUSINESS PERMIT ON THE THIRD AND FINAL OFFENSE.

008"

SECTION 12, implementing Rules and Regulations. - Within sity (60) days from the effectivity of
this Act, the Department of Labor and Employment shall promulgate the necessary rules and regulations to
implement this Act.

SECTION 13. Separability Clause — If for any reason, part of the provision of this Act shall be held
to be unconstitutional or invalid, other parts or provisions hereof which are not affected thereby shall continue
to be in full force and effect.

SECTION 14. Repealing Clause ~ All aws, decrees, orders, rules, and regulations, or parts thereof,
inconsistent with the provisions of this Act are hereby repealed, amended, or modified accordingly.

SECTION 45. Effectvity Clause - This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in at least two newspapers of general circulation.

Approved.