Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Constitution Hills, Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No._____ 
________________________________________________________________ 
Introduced by: REPRESENTATIVE EDWIN L. OLIVAREZ 
EXPLANATORY NOTE 
There is no denying that an inherent inequality exists between employers 
and employees in that the former always has the undue advantage and the latter 
has not an ounce of bargaining power when it comes to the terms and conditions 
of the latter's employment. 
For our laborer, employment is the only thing that they cling to for survival. 
Hence they would never dare assert their rights, fight any form of discrimination 
or oppression, or push for a more favorable working condition out of fear to lose 
their precious jobs. For this reason, they always find themselves at the mercy of 
their employer. 
The government therefore has the duty to ensure that this inherent 
inequality is optimally reduced, if not totally eradicated, for the protection of the 
rights and ultimately, the preservation of the dignity of our humble laborers. 
The passage of this Act addresses a specific outcry of one group of laborers 
in our country – the public utility bus drivers and conductors. This Act provides 
for a mandatory fixed wage rate to be afforded to the said workers using an 
effective scheme known as the “part fixed, part performance based 
compensation". Said scheme shall be mutually agreed upon by the employer bus 
owner/operator and the bus drivers and conductors. 
This Act endeavors to give our bus drivers and conductors a fairer, more 
stable wage that they truly deserve, especially those drivers and conductors who 
really work hard and exert more efforts which eventually give the bus companies 
greater profits. 
This measure, if passed, shall also prevent numerous road accidents 
brought about by the stiff competition of bus drivers and conductors to pick and 
transport as many passengers as they could without regard to traffic rules and 
January 26, 2023
10:32 am
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regulations since they are relying on mere commissions based on the number of 
passengers that they could ferry in a day. 
It is for this purpose that this bill is earnestly sought to be passed. 
EDWIN L. OLIVAREZ 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Constitution Hills, Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No._____ 
________________________________________________________________ 
Introduced by: REPRESENTATIVE EDWIN L. OLIVAREZ 
AN ACT FIXING THE WAGE RATE OF BUS DRIVERS AND 
CONDUCTORS 
SECTION 1. Short Title. This Act shall be known as the “Bus Drivers 
and Conductors' Fixed Wage Act of 2023”. 
SECTION 2. This Act shall apply to all public utility bus owners and/or 
operators employing drivers and conductors. 
SECTION 3. The following terms, as used herein, shall mean as follows: 
(a) Public Utility Bus Driver - a licensed professional driver, hired or paid,
to drive a public utility bus.
(b) Public Utility Bus Conductor - a person hired to serve as conductor in
a public utility bus.
(c) Public Utility Bus Operator - a person issued a Certificate of Public
Convenience to operate a public utility bus by the Land Transportation
Franchising and Regulatory Board (LTFRB).
(d) Ridership - the number of persons who ride the public utility bus
transport system.
(e) Minimum Wage - the lowest wage rate that an employer should pay to
his/her employee as fixed and/or prescribed by the Regional Tripartite
Wages and Productivity Boards (RTWPB) of the National Wages and
Productivity Commission (NWPC).
(f) Fixed and Performance-Based Compensation Scheme - compensation
scheme for bus drivers and conductors wherein the fixed component shall
be based on an amount mutually agreed upon by the owner/operator and
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the driver/conductor which shall in no case be lower than the applicable 
minimum wage. The performance-based component shall be based on 
safety performance, business performance, and other related parameters. 
 
(g) Workplace - the office, premises or worksite where the workers are 
habitually employed and shall include the place where the workers who 
have no fixed or definite work site report regularly for assignment in the 
course of their employment. 
 
For the public utility bus transport industry, workplace includes the bus, 
bus terminals, garage, and the company office 
 
SECTION 4. Employment Agreement Must Include Provision/s on 
Fixed Wage and other Wage-related Benefits. 
 
There shall be an agreement in writing between the public utility bus 
owner/operator and the public utility bus driver and/or conductor which shall 
include the following terms: 
 
a. Driver or conductor's full name, date of birth or age, address, civil status, 
and SSS ID Number; 
 
b. Public utility bus owner's/ operator's name and address; 
 
c. Place where and date when the employment agreement is entered into; 
 
d. Hours of work; 
 
e. Amount of the driver's or conductor's fixed wage and formula used for 
Calculating the performance-based compensation; 
 
f. Wages and wage-related benefits such as overtime pay, holiday pay, 
premium pay, 13th month pay, and service incentive leave; 
 
g. Social security and welfare benefits; 
 
h. Separation or retirement payment; and 
 
i. Other benefits under existing laws. 
 
The public utility bus owner/operator shall provide the public utility bus 
driver/conductor a signed and notarized original copy of the agreement. 
 


SECTION 5. Fixed and Performance Based Compensation Scheme. 
Public Utility bus owners and/or operators shall adopt a mutually-agreed upon 
“part-fixed, part-performance” based compensation scheme for their employed 
drivers and conductors. 
 
SECTION 6. 
Component of Fixed Compensation. The fixed 
compensation component mentioned in the preceding section shall be based on 
an amount mutually agreed upon by the owner/operator and the driver/conductor. 
In determining the same, the minimum ridership requirement shall be taken into 
account and shall in no case be lower than the applicable minimum wage for work 
during normal hours/days. 
 
The bus drivers and/or conductors shall also be entitled wage-related 
benefits such as overtime pay, premium pay, and holiday pay, among others. 
 
SECTION 7. Component of Performance Based Compensation. The 
performance-based compensation component mentioned in Section 5 hereof shall 
be based on safety performance as well as business performance such as ridership 
and/or profitability, and other related factors and parameters. 
 
SECTION 8. Total Compensation Shall Not Be Less Than Minimum 
Wage. The total compensation of the bus drivers and conductors, regardless of 
the agreed respective percentages of the fixed and performance-based 
components thereof, shall in no way be less than the minimum wage prescribed 
by law. 
 
SECTION 9. Excluded Benefits. The compensation referred to in this Act 
shall only pertain to the basic wage of the employees. The employer/bus owner 
shall not subsume in this “part fixed, part performance based” compensation the 
other benefits that the employees are entitled to as prescribed by law and as 
agreed upon in an existing company policy, employer-employee contract, and/or 
Collective Bargaining Agreement. 
  
SECTION 10. Payment of Wages. Wages for all actual work during the 
normal work hours and days shall not be lower than the applicable minimum 
wage rates. Wages shall be paid at least once every two weeks or twice a month 
at intervals not exceeding sixteen (16) days. 
 
SECTION 11. Holiday Pay. The driver and/or conductor shall be paid a 
holiday pay of 100% of the minimum wage even if he or she does not report for 
work, provided he or she is present or is on leave of absence with pay on the 
workday immediately preceding the holiday. 
 


If the driver/ conductor works or is required to work on the said holiday, 
he or she shall be paid 200% of the total compensation he would be receiving 
under the “part fixed, part performance based” compensation scheme. Meaning, 
in determining the rightful holiday pay of the said bus driver or conductor who 
reported for work, the two components of the wage shall be computed 
independently such that the fixed performance-based amount which may vary 
depending on the efforts of the driver and/or conductor shall be also multiplied 
by 200%. 
 
However, the abovementioned holiday pays for a driver or conductor who 
reports for work on the said holiday shall in no way be less than 200% of the 
applicable minimum wage rate. 
 
SECTION 12. Overtime Pay. A bus driver and/or conductor shall be 
entitled to an overtime pay equivalent to at least 25% of the basic wage under the 
"part fixed, part performance based" compensation scheme adopted by the parties 
on ordinary days and 30% on regular holidays, special days, and rest days for 
work beyond eight (8) hours per day. 
 
SECTION 13. Night Shift Differential. A bus driver and/or conductor 
shall be entitled to a night shift pay of an additional 10% of the basic wage under 
the "part fixed, part performance based" compensation scheme adopted by the 
parties for work between 10:00PM and 6:00AM of the following day. 
 
SECTION 14. Operational Guidelines. The National Wages 
Productivity Commission (NWPC) is hereby tasked to develop operational 
guidelines to implement the part fixed, part performance based compensation 
scheme including the formula that should be used by public utility bus companies. 
 
SECTION 15. Submission of Proposed Scheme. All public utility bus 
owners and/or operators shall submit a proposed compensation scheme which 
shall be mutually agreed upon beforehand by them and their drivers and 
conductors to the respective Regional Tripartite Wages and Productivity Board 
(RTWPB) for the approval of the same and for information and reference 
purposes within sixty (60) days after the passage and publication of this Act.  
 
SECTION 16. Non-Diminution of Benefits. Nothing in this Act shall be 
construed to authorized diminution of benefits as prescribed by law and as already 
being enjoyed by the bus drivers and conductors at the time of the passage of this 
Act. 
 
SECTION 17. Effect on Existing Company Policy, Contracts and/or 
Collective Bargaining Agreements (CBAs). The minimum benefits provided in 


this Act shall be without prejudice to any company policy, contract, or CBA 
providing for better or more advantageous terms and conditions of employment 
to the bus drivers and/or conductors. 
 
SECTION 18. Implementing Rules and Regulations. The Department 
of Labor and Employment (DOLE) shall promulgate the implementing rules and 
regulations for the effective and immediate implementation of this Act. 
 
SECTION 19. Repealing Clause. All law, decrees, executive orders, 
letters of instructions, rules and regulations or parts thereof, which are 
inconsistent with this Act are hereby repealed amended or modified accordingly. 
 
SECTION 20. Separability Clause. If any provision of this Act is 
judicially declared invalid or unconstitutional, the remaining provisions of this 
Act not affected thereby shall be continue to be in full force and effect. 
 
SECTION 21. Effectivity Clause. This act shall take effect fifteen (15) 
days following its publication in two (2) newspapers of general circulation. 
 
APPROVED.