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TWENTIETH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
25 JUL-8 P5 -A6
SENATE
S. No. 2*^3
Introduced by Senator Paolo Benigno "Bam" A. Aquino IV
AN ACT
PROVIDING FOR A TWO HUNDRED PESOS (P200.00)
DAILY MINIMUM WAGE INCREASE FOR 
EMPLOYEES AND WORKERS IN THE PRIVATE SECTOR
EXPLANATORY NOTE
Many Filipino workers do their best every day to support their families—often 
working long hours and making sacrifices just to get by. But even with all their effort, 
the rising prices of food, transportation, electricity, and other basic needs continue to 
make it difficult to make ends meet. According to official data, prevailing minimum 
wages across regions remain significantly below the estimated family living wage, 
forcing many working Filipinos to take on multiple jobs, incur debt, or rely on informal 
work arrangements just to survive.
This bill seeks to provide immediate relief to minimum wage earners by 
mandating an across-the-board increase of Two Hundred Pesos (P200.00) in the daily 
minimum wage of workers in the private sector nationwide. It covers workers across 
all industries and occupations, regardless of employment status, including those in 
contractual and sub-contractual arrangements, and applies to both agricultural and 
non-agricultural work.
At the same time, the bill recognizes the realities faced by micro, small and 
medium enterprises (mSMEs), which are vital to the country's economy but often 
operate with limited resources. To support their continued viability, the bill exempts 
mSMEs from the wage increase.
Finally, the bill reaffirms the authority of the Regional Tripartite Wages and 
Productivity Boards (RTWPBs) to grant additional wage increases based on regional 
conditions, in accordance with Republic Act No. 6727, or the "Wage Rationalization 
Act," as amended.
This measure is not meant to replace long-term reforms or other wage-setting 
mechanisms. Rather, it serves as a necessary step to help workers cope with the 
increasing cost of living while continuing the conversation on livable wages and decent 
work.


Our workers keep the economy moving, and this bill is a way of acknowledging 
their contribution with meaningful support. Ensuring they take home wages that are 
more responsive to today's realities is both fair and necessary.
In view of the foregoing, the passage of this bill is earnestly sought.
AM


TWENTIETH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
! ’i* T \
25 JUL-8 P5:46
SENATE
s. No. 273
Rm.
Introduced by Senator Paolo Benigno "Bam" A. Aquino IV
AN ACT
PROVIDING FOR A TWO HUNDRED PESOS (P200.00)
DAILY MINIMUM WAGE INCREASE FOR 
EMPLOYEES AND WORKERS IN THE PRIVATE SECTOR
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
1 
Section 1. Short Title. -This Act shall be known as the "P200 Daily Minimum
2 
Wage Increase Act of 2025".
3 
Sec. 2. Declaration of Policy. - It is a policy of the State to alleviate the living
4 
conditions of the ordinary Filipino through policies that provide for a decent and
5 
humane standard of living and improved quality of life, particularly of the working
6 
class by ensuring the right of labor to its just share in the fruits of production, to
7 
guarantee the workers' right to a living wage, and to promote social justice through
8 
the adoption of measures calculated to ensure the well-being and economic security
9 
of all the members of the community.
10 
Sec. 3. Wage Increase. -The daily rate of all minimum wage workers in the
11 
private sector, regardless of employment status, including those in contractual and
12 
sub contractual arrangements, whether agricultural or non-agricultural, shall be
13 
increased by Two Hundred Pesos (P200.00) upon the effectivity of this Act:


1 
Provided, That micro, small and medium enterprises (MSMEs), as defined under
2 
Republic Act No. 9501 or the "Magna Carta for Micro, Small and Medium Enterprises,"
3 
shall be exempted from the implementation of the wage increase under this Act:
4 
Provided, further. That the exemption shall cease to apply once the enterprise no
5 
longer qualifies as a micro, small or medium enterprise under RA 9501, and shall be
6 
subject to periodic review and renewal:
7 
Provided, finaiiy. That nothing in this Act shall prevent the respective Regional
8 
Tripartite Wages and Productivity Boards to grant additional increases to the workers
9 
and employees on the basis of their determination pursuant to Republic Act No. 6727,
10 
otherwise known as the "Wage Rationalization Act", as amended.
11 
Sec. 4. Correction of Wage Distortion. - Where a wage distortion occurs as a
12 
result of the increase in minimum wage under this Act, the employer and the union,
13 
or the employer and the workers, in the absence of a union, shall negotiate to correct
14 
the distortion in accordance with the provisions of Article 124 of Presidential Decree
15 
No. 442 or the "Labor Code of the Philippines", as amended, and other existing laws,
16 
rules and regulations.
17 
Sec. 5. Non-Chargeabiiity of Prior Increases. - No wage increase shall be
18 
credited as compliance with the increase prescribed herein unless expressly provided
19 
under valid collective bargaining agreements: Provided, That such wage increase was
20 
granted in anticipation of the minimum wage increase under this Act: Provided,
21 
further. That where such increase is less than the prescribed increase under this Act,
22 
the employer shall pay the difference. Such increases shall not include anniversary
23 
wage increases, merit wage increases and those resulting from the regularization or
24 
promotion of empioyees.
25 
Sec. 6. Non-Diminution of Other Benefits. - Nothing in this Act shall be
26 
construed to reduce any existing allowance and benefit of any form under existing


1 
laws, decrees, issuances, executive orders, and any contract or agreement between
2 
workers and employers.
3 
Sec. 7. Inspection by the Department of Labor and Employment (DOLE). -The
4 
DOLE shall conduct inspection of payroll and other financial records kept by the
5 
company or business to determine whether the workers are paid the prescribed
6 
minimum wage increase and other benefits granted by law. The said inspection may
7 
take place at any time of the day or night, whenever work is being undertaken. In
8 
unionized companies, the DOLE inspectors shall always be accompanied by the
9 
president or any responsible officer of the recognized bargaining unit or of the
10 
interested union in the conduct of the inspection. In non-unionized companies,
11 
establishments or businesses, the inspection should be carried out in the presence of
12 
a workers' representative.
13 
The DOLE shall also strengthen its labor standard enforcement system by requiring
14 
covered employers to submit digital payroll data, in such format and frequency as may
15 
be determined by the Department, through the Online Compliance Portal or any other
16 
electronic compliance platform it may designate.
17 
The submission of electronic records shall be without prejudice to on-site inspections
18 
when warranted.
19 
Sec. 8. Penalties. - Any person, corporation, trust, firm, partnership,
20 
association or entity violating any provision of this Act shall be punished by a fine of
21 
not less than Fifty Thousand Pesos (P50,000.00) but not more than One Hundred
22 
Thousand Pesos (P100,000.00) plus moral damages for each affected worker and the
23 
costs of litigation including attorney's fees, or imprisonment of not less than two (2)
24 
years nor more than four (4) years, or both at the discretion of the court: Provided,
25 
That if the violation is committed by a corporation, trust or firm, association or any
26 
other entity, the penalty of imprisonment shall be imposed upon the entity's
27 
responsible officers including, but not limited to, the president, vice president, chief
28 
executive officer, general manager, managing director or partner.


1 
The employer concerned shall be ordered to pay an amount equivalent to double the
2 
unpaid benefits owing to the employees: Provided, That the payment of indemnity
3 
shall not absolve the employer from the criminal liability imposable under this Act:
4 
Provided, further. That any person convicted under this Act shall not be entitled to the
5 
benefits provided for under the Probation Law.
6 
In case a fine and/or indemnity is decreed by the National Labor Relations Commission
7 
(NLRC) against person/s who violated the provisions of this Act and cannot be
8 
immediately satisfied because of the refusal to pay, or in case of the unavailability or
9 
inadequacy of funds, the bank deposits, financial interests and other personal property
10 
not capable of manual delivery in the possession or control of third parties of the
11 
owner in case of sole proprietorship or the assets of the corporation, association or
12 
any other entity, shall be garnished. If such properties are not enough, movable and
13 
immovable properties may be levied to fully satisfy the imposed fines and/or
14 
indemnities.
15 
Failure on the part of any corporation, trust or firm, partnership, association or any
16 
other entity to comply with the provisions of this Act shall be a ground for non-renewal
17 
of business permits.
18 
Sec. 9. Construction in Favor of Labor. - All doubts in the implementation and
19 
interpretation of the provisions of this Act, including its implementing rules and
20 
regulations, shall be resolved in favor of labor.
21 
Sec. 10. Implementing Rules and Regulations. -The Secretary of Labor and
22 
Employment shall promulgate the necessary rules and regulations for the effective
23 
implementation of this Act.
24 
Sec. 11. Separability Clause. - If any provision of this Act is held
25 
unconstitutional, the remainder thereof not otherwise affected shall remain in full force
26 
and effect.


1 
Sec. 12. Repealing Clause. - All laws, decrees, executive orders, rules and
2 
regulations and other issuances or parts thereof which are inconsistent with this Act
3 
are hereby repealed, amended or modified accordingly.
4 
Sec. 13. Effectivity Clause. -This Act shall take effect after fifteen (15) days
5 
following the completion of its publication in the Official Gazette o^c in a newspaper of
6 
general circulation.
Approved,