'(©ffiir ot tiiL1
NINETEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
Third Regular Session 
)
25 ,|AN 27 P4 :27
SEN
S.B. No.
l..r ; :■;
Introduced by SENATOR IMEE R. MARCOS
AN ACT
ESTABLISHING A NATIONAL MINIMUM WAGE FOR PRIVATE SECTOR 
WORKERS, IMPOSING STRICTER PENALTIES FOR VIOLATIONS THEREOF, 
AND AMENDING FOR THIS PURPOSE PRESIDENTIAL DECREE NO. 442, AS
AMENDED, OTHERWISE KNOWN AS THE "LABOR CODE OF THE
PHILIPPINES"
EXPLANATORY NOTE
Article XIII Section 3 of the 1987 Constitution states that workers, "shall be 
entitled to security of tenure, humane conditions of work, and a living wage. "Article 
XV Section 3 further says that the State shall defend the right of the family to a 
living wage.
The enactment of Republic Act No. 6727, also known as the "Wage 
Rationalization Act' in 1989 resulted in the abandonment of legislating national 
minimum wage and established the mechanism of regionalized wage setting and 
wage increases via regional wage boards. However, instead of the decentralizing 
growth to the countryside, the system preserves the economic inequality between 
the poor regions and Metro Manila and resultantly perpetuates the poverty of these 
poor regions and their workers.
This measure seeks to establish a National Minimum Wage rate and abolish 
the Regional Tripartite Wages and Productivity Boards, to eliminate the difference in 
the minimum wage between regions. The National Wages and Productivity Board 
will be tasked with determining the proper minimum wage for the country through 
the issuance of wage orders, subject to annual review.
The immediate passage of this legislation is earnestly sought.
IMEe^RTMARCOS/^


NINETEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
Third Regular Session 
)
SENATE
s.B. No. 2962
; iDffrrr of t'iC S'
25 JAN 27 P4 ;27
iii'-fi’
Introduced by SENATOR IMEE R. MARCOS
AN ACT
ESTABLISHING A NATIONAL MINIMUM WAGE FOR PRIVATE SECTOR 
WORKERS, IMPOSING STRICTER PENALTIES FOR VIOLATIONS THEREOF, 
AND AMENDING FOR THIS PURPOSE PRESIDENTIAL DECREE NO. 442, AS 
AMENDED, OTHERWISE KNOWN AS THE "LABOR CODE OF THE
PHILIPPINES"
Be it enacted by the Senate and the House of Representatives of the Phiiippines in 
Congress assembled.
1 
Section 1. This Act shall be known as the "National Minimum Wage Act"
2 
Section 2. Article 99 of the Labor Code, as amended, is hereby amended to
3 
read as follows:
4 
"ART. 99. [Regional] NATIONAL Minimum Wage[s]. - The NATIONAL
5 
minimum wage [rates] for agricultural and non-agricultural employees and workers
6 
across the country shall be [those] PRESCRIBED BY THE NATIONAL WAGES
7 
AND PRODUCTIVITY BOARD (NWPB) [the Regional Tripartite Wages and
8 
Productivity Boards]."
9 
Section 3. Creadon of the National Wages and Productivity Board. - Articles
10 
120 and 121 of the Labor Code, as amended, are hereby further amended to read as
11 
follows:
12 
"ART. 120. Creation of the National Wages and Productivity [Commission]
13 
BOARD. — There is hereby created a National Wages and Productivity
14 
[Commission] BOARD, hereinafter referred to as the [Commission] BOARD, which
15 
shall be attached to the Department of Labor and Employment (DOLE) for policy and
16 
program coordination."


1 
"ART. 121. Powers and Functions of the [Commission] BOARD. — The
2 
[Commission] BOARD shall have the following powers and functions:
3 
"(a) To act as the national consultative and advisory body to the President of
4 
the Philippines and Congress on matters relating to wages, incomes and
5 
productivity;
6 
"(b) To formulate policies and guidelines on wages, incomes and productivity
7 
improvement at the enterprise, industry and national levels;
8 
"(c) To prescribe rules and guidelines for the determination of THE
9 
appropriate minimum wage and productivity measures at the [regional, provincial or
10 
industry] NATIONAL level[s];
11 
"(D) TO ANNUALLY DETERMINE AND PRESCRIBE ADJUSTMENTS,
12 
WHENEVER NECESSARY, TO THE NATIONAL MINIMUM WAGE;
13 
"[(d) To review regional wage levels set by the Regional Tripartite Wages and
14 
Productivity Boards to determine if these are in accordance with prescribed
15 
guidelines and national development plans;]
16 
"[(e)] (E) To undertake studies, researches and surveys necessary for the
17 
attainment of its functions and objectives, and to collect and compile data and
18 
periodically disseminate information on wages and productivity and other related
19 
information, including, but not limited to, employment, cost-of-living, labor costs,
20 
investments and returns;
21 
["(f) To review plans and programs of the Regional Tripartite Wages and
22 
Productivity Boards to determine whether these are consistent with national
23 
development plans;]
24 
["(g) To exercise technical and administrative supervision over the Regional
25 
Tripartite Wages and Productivity Boards;]
26 
"[(h)] (F) To [call, from time to time,] CONVENE a national tripartite
27 
conference of representatives of government, workers and employers for the
28 
consideration of measures to promote higher wages and improved standards of
29 
living. The national tripartite conference on wages shall be convened on an annual
30 
basis, or as the situation demands it;
31 
"[(i)] (G) To exercise such powers and functions as may be necessary to
32 
implement this Act.


1 
"The [Commission] BOARD shall be composed of the Secretary of Labor and
2 
Employment as ex-officio chairman, the Director-General of the National Economic
3 
and Development Authority (NEDA) as ex-officio vice-chairman, and two (2)
4 
members each from workers and employers sectors upon recommendation of the
5 
Secretary of Labor and Employment to be made on the basis of the list of nominees
6 
submitted by the workers and employers sectors, respectively, and who shall serve
7 
for a term of five (5) years. The Executive Director of the [Commission] BOARD
8 
shall also be a member of the [Commission] BOARD.
9 
"The [Commission] BOARD shall be assisted by a Secretariat to be headed by
10 
an Executive Director and two (2) Deputy Directors, who shall be appointed by the
11 
President of the Philippines, upon the recommendation of the Secretary of Labor and
12 
Employment.
13 
"The Executive Director shall have the same rank, salary, benefits and other
14 
emoluments as that of a Department Assistant Secretary, while the Deputy Directors
15 
shall have the same rank, salary, benefits and other emoluments as that of a Bureau
16 
Director. The members of the [Commission] BOARD representing labor and
17 
management shall have the same rank, emoluments, allowances and other benefits
18 
as those prescribed by law for labor and management representatives in the
19 
Employees'Compensation Commission."
20 
Section 4. Abolition of the Regional Tripartite Wages and Productivity Board.
21 
- Articles 122 and 123 of the Labor Code, as amended, are hereby repealed.
22 
Section 5. Standards for National Minimum Wage Fixing. - Article 124 of the
23 
Labor Code is hereby amended and renumbered to read as follows:
24 
"ART. [124] 122. - The [regional] NATIONAL minimum wage[s] to be
25 
established [by the Regional Board] shall be as nearly adequate as is economically
26 
feasible to maintain the minimum standards of living necessary for the health,
27 
efficiency and general well-being of the employees within the framework of the
28 
national economic and social development program. In the determination of such
29 
[regional] NATIONAL minimum wage[s], [the Regional Board] the NWPB shall,
30 
among other relevant factors, consider the following:
31 
(a) The [demand for] RIGHT TO living wage;


1 
(b) THE COST FOR PROVIDING THE FOOD, CLOTHING, SHELTER,
2 
EDUCATION, HEALTH MAINTENANCE AND OTHER NON-FOOD
3 
NECESSITIES FOR RAISING THE FAMILY OF A WORKER;
4 
(c) [Wage adjustment vis-a-vis the consumer price index] THE
5 
PHYSIOLOGICAL, SOCIAL AND OTHER RELATED NEEDS OF THE WORKERS
6 
AND THEIR FAMILIES;
7 
(d) [The cost of living and changes or increases therein] MOVEMENTS IN
8 
THE CONSUMER PRICE INDEX (CPI);
9 
(e) The [needs of workers and their families] COST OF LIVING
10 
EXPENSES;
11 
[(e) The need to induce industries to invest in the countryside;]
12 
[(f)] (F) Improvements in standards of living; AND
13 
[(g) The prevailing wage levels;]
14 
[(h) Fair return of the capital invested and capacity to pay of employers;] [(F)
15 
Effects on employment generation and family income; and]
16 
[(G)] (G) The equitable distribution of income and wealth along the
17 
imperatives of economic and social development.
18 
[The wages prescribed in accordance with the provisions of this Title shall be
19 
the standard prevailing minimum wages in every region. These wages shall include
20 
wages varying with industries, provinces or localities if in the judgment of the
21 
Regional Board, conditions make such local differentiation proper and necessary to
22 
effectuate the purpose of this Title.]
23 
Any person, company, corporation, partnership or any other entity engaged in
24 
business shall file and register annually with the appropriate [Regional Wage
25 
Boards, Commission] REGIONAL OFFICE OF THE DEPARTMENT OF LABOR
26 
AND EMPLOYMENT and the [National Statistics Office] PHILIPPINE
27 
STATISTICS AUTHORITY (PSA), an itemized listing of their labor component,
28 
specifying the names of their workers and employees below the managerial level,
29 
including learners, apprentices and disabled/handicapped workers who were hired
30 
under the terms prescribed in the employment contracts, and their corresponding
31 
salaries and wages.


1 
Section 6. Amount of National Minimum Wage (NMW). - Upon effectivity of
2 
this Act, the daily statutory minimum wages of private sector workers in both
3 
agricultural and non-agricuitural enterprises nationwide shall be those prescribed by
4 
the Regional Tripartite Wages and Productivity Board in the National Capital Region
5 
on the date this Code takes effect. Provided, that the wage increases arising from
6 
the new national minimum wage should not prejudice other wage increases through
7 
collective bargaining agreements.
8 
The national minimum wage shall be adjusted on an annual basis or
9 
whenever a supervening event arises such as extraordinary increase in prices of
10 
basic goods and services.
11 
Section 7. Terms of Service of the Secretariat of RTWPB. - The terms of
12 
service of the members of the secretariat of each of the regional tripartite wages
13 
and productivity board (RTWPB) shall cease upon the effectivity of this Act. The
14 
affected personnel hired on a permanent basis and with appointments attested to by
15 
the CSC shall be entitled to retirement benefits and separation incentives subject to
16 
existing laws and regulations.
17 
Section 8. Non-Diminution of Benefits. - Nothing in this Act shall be
18 
construed as to diminish or discontinue existing benefits currently enjoyed whether
19 
or not these are granted under collective bargaining agreements (CBA) or present
20 
laws.
21 
Section 9. Penalties. - Section 12 of Republic Act 6727, which was amended
22 
by Section 1 of Republic Act 8188, is hereby further amended to read as follows:
23 
"Section 12. Any person, corporation, trust, firm, partnership, association or
24 
entity which refuses or fails to pay [any of the prescribed] THEIR WORKERS THE
25 
NATIONAL MINIMUM WAGE SET HEREIN AND ANY OF THE SUCCEEDING
26 
LEGISLATED WAGE increases or adjustments [in the wage rates] made in
27 
accordance with this Act shall be punished by a fine [not less than Twenty-five
28 
thousand pesos (P25,000.00) nor more than One-hundred thousand pesos
29 
(P100,000.00)] WHICH SHALL BE FIXED AT ONE HUNDRED PERCENT
30 
(100%) OF THE TOTAL AMOUNT OF THE WAGE INCREMENT DUE THE
31 
EMPLOYEES TO BE MULTIPLIED BY THE NUMBER OF WORKING DAYS THE
32 
WAGE INCREMENT HAS BEEN UNPAID TO THE EMPLOYEES or imprisonment


1 
of not less than [two (2)] THREE (3) years nor more than [four (4)] FIVE (5)
2 
years, or both such fine and imprisonment at the discretion of the court. Provided,
3 
That any person convicted under this Act shall not be entitled to the benefits
4 
provided for under the Probation Law.
5 
The employer concerned shall be ordered to PAY THE EMPLOYEES MORAL
6 
DAMAGES OF FIFTY THOUSAND PESOS (PSO.OOO.OO) EACH EMPLOYEE
7 
PLUS an amount equivalent to double the unpaid benefits owing to the employees;
8 
Provided, That payment of indemnity shall not absolve the employer from the
9 
criminal liability imposable under this Act.
10 
FURTHERMORE, THE BUSINESS PERMIT OF THE VIOLATING ENTITY
11 
SHALL BE SUSPENDED FOR ONE (1) MONTH TO THREE (3) YEARS FOR THE
12 
SECOND OFFENSE; FOR THIRD OFFENSE, THE BUSINESS PERMIT OF THE
13 
OFFENDER SHALL BE REVOKED.
14 
If the violation is committed by a corporation, trust or firm, partnership,
15 
association or any other entity the penalty of imprisonment shall be imposed upon
16 
the entity's responsible officers, including, but not limited to, the president, vice-
17 
president, chief executive officer, general manager, managing director or partner.
18 
Section 10. Implementing Rules and Regulations. - The Department of
19 
Labor and Employment (DOLE) and other agencies charged with carrying out the
20 
provisions of this Act shall, within sixty (60) days after the effectivity of this Act,
21 
formulate the necessary rules and regulations for its effective implementation.
22 
Section 11. Separability Clause. — Should any provision of this Act be
23 
declared invalid or unconstitutional, the validity of the other provisions shall not be
24 
affected thereby.
25 
Section 12. Repealing Clause. - All laws, orders, issuances, rules and
26 
regulations or parts thereof inconsistent with the provisions of the Act are hereby
27 
repealed, amended or modified accordingly.
28 
Section 13. Effectivity. - This Act shall take effect fifteen (15) days after its
29 
publication in two (2) newspapers of general circulation.
30 
Approved,