Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS
First Regular Session

House Bill No._88

Introduced by TUCP Partylist Representative
HON. RAYMOND DEMOCRITO C. MENDOZA

EXPLANATORY NOTE

The TUCP Party-list refiles the P200 daily minimum wage increase bill, which
is exactly the 19th Congress original House Bill No. 11376 unanimously approved by
the House of Representatives on third and final reading on 04 June 2025, and which
was transmitted to the Senate. However the bicameral conference committee to
reconcile the House and Senate wage hike bills was never convened during the 19th
Congress. Since this measure was already approved on Third Reading, this
representation invokes Section 48 of the Rules of the House of Representative which
allows fast-tracking of priority bills that were approved on third reading in the
previous Congress. This is only right and proper as we feel and believe that the 200
legislated wage hike must be immediately taken up by the 20th Congress as its first
and foremost priority to forge ahead in the historic struggle for the first-ever legislated
wage hike in nearly four decades and address the sub-poverty-threshold wages now
prevailing nationwide.

Since 1989, by virtue of Republic Act No. 6727 (Wage Rationalization Act),
our over five million minimum wage earners have been left behind as our economy
grew, their wages subject to the less-than-tender mercy of the Regional Tripartite
Wages and Productivity Boards (RTWPBs) which have perennially doled out token
‘barya-barya’ scraps and crumbs as supposed wage adjustments. This has
institutionalized poverty by setting minimum wages below the government-set
poverty threshold. As a result, that system is creating a permanent class of poor
people who labor to create the wealth of the few.

36 years later, with everything rising—food prices, utility bills, transportation
fares, oil prices, and social security contributions—workers’ minimum wages, already
below the poverty line, continue to stagnate. Self-rated poverty reached its highest
evel in over two decades. Involuntary hunger has returned to levels not seen since the
height of the COVID-19 pandemic. We believe that the House of Representatives
therefore sees a P200 wage increase as a fair and equitable resetting of a balance that
has far too often been tilted in favor of big business. Certainly, that imbalance in the
sharing of wealth no longer has a place in the modern and growing Philippine
economy.


Confronted with a broken wage-setting system and a worsening cost-of-living
crisis, the 19th Congress acted as the Senate passed a P100 daily minimum wage
increase while the House of Representatives passed a P200 daily minimum wage hike
yet there was a failure to convene the bicameral conference committee to reconcile
and finalize an enrolled bill for a legislated wage hike. But the voice of the Filipino
people, especially every worker and their family, has not only been loud and clear but
resolute: the May 2025 Social Weather Stations (SWS) survey indicates that 92% of
Filipinos want the Senate to prioritize a minimum wage hike while 95% demand the
same from the House of Representatives.

The fight for the P200 wage hike, therefore, continues in the 20th Congress and
will never end, not even pause, so that our over five million minimum wage
carners—who break their backs and rack their brains every day just to make ends
meet, trying to survive one crisis or emergency after another, and clinging to the last
shred of dignity as they are pushed to the brink of hopelessness—will finally feed
their families with nutritious meals based on the Ateneo Policy Center's estimated
daily cost of the government’s 'Pinggang Pinoy’ daily healthy food guide for a family
of five at P693.30/day and will step closer towards living wages estimated by the
thinktank IBON Foundation at over P1,200.

Everyone, not only minimum wage eamers or formal sector workers who will
benefit from the correction of the wage distortion, wins with this P200 wage hike. Our
vendors, drivers, and countless workers in our larger informal economy, too, will feel
the positive impact of this wage hike. When minimum wage eamers finally have
higher take-home pay, they spend it in their local stores, public transportation, and
markets, hence small businesses thrive and the incomes of our informal workers rise.

The P200 wage hike is also good for business because when workers earn more,
they work harder, stay longer, and help businesses grow more.

‘A P200 wage hike, after all, fits well within the fair profit margins of
businesses. IBON Foundation, based on the largest survey of business establishments
in the country, established that a P200 wage hike would only account for 9-15% of
annual business profits—from micro to large firms. Further, this bill seeks to provide
incentives from the Department of Labor and Employment (DOLE) to small
enterprises to assist in their compliance with the wage increase on top of existing
wage exemptions already in place for Barangay Micro Business Enterprises
(BMBES), and the billions in tax cuts and financial incentives already granted to both
corporations and MSMEs under laws like CREATE and CREATE MORE. No less
than the 2021 Nobel Prize in Economics was awarded for groundbreaking research
which discovered that higher minimum wages do not destroy jobs because higher
wages are not just a cost—they are an investment to boost demand and stimulate
growth.

This P200 wage hike is equally good for our economy because if the Philippines
is truly among the fastest-growing economies in Asia-Pacific, even outpacing many of
our ASEAN neighbors, then it is both an economic and moral imperative to share that
prosperity with those who sacrifice their blood, sweat, and tears to make this
possible—the working class of this nation. Higher wages fuel more spending which
strengthens businesses and creates more and better jobs. That is how we build an


economy—not from the top-down, where wealth trickles too slowly while workers are
left wanting and waiting for far too long—but from the ground-up, where honest hard
work is rewarded and where growth is shared as the economy moves forward—not
just for the few, but for all.

With more time to push for a legislated wage hike and greater unity and political
action, the fight for legislated wage increase continues in the 20th Congress and
hopefully, with the continued support of our colleagues in Congress, the P200
legislated wage hike will be expedited to finally reach the President’s desk for his
signature into law.

In view of the foregoing, the passagy@f this bill is earnestly sought.

HON.

‘UCP Partylist Representative


Republic of the Philippines
HOUSE OF REPRESENTATIVES

Quezon City

TWENTIETH CONGRESS
First Regular Session

House Bill No._ 88

Introduced by TUCP Partylist Representative
HON. RAYMOND DEMOCRITO C. MENDOZA

AN ACT PROVIDING FOR A TWO HUNDRED PESOS (P200.00) DAILY
WAGE INCREASE FOR MINIMUM WAGE WORKERS IN THE PRIVATE
SECTOR

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Short Title. — This Act shall be known as the “Wage Hike For
Minimum Wage Workers Act”.

SECTION 2. Declaration of Policy. ~ It is a policy of the State to alleviate the living
conditions of the ordinary Filipino through policies that provide for a decent and
humane standard of living and improved quality of life, particularly of the working
class by ensuring the right of labor to its just share in the fruits of production, to
guarantee the workers' right to a living wage, and to promote social justice through
the adoption of measures calculated to ensure the well-being and economic security of
all the members of the community.

SECTION 3. Minimum Wage Increase. — Upon the effectivity of this Act, the daily
rate of all minimum wage workers in the private sector, regardless of employment
status, including those in contractual and sub-contractual arrangements, whether
agricultural or nonagricultural, shall be increased by Two hundred pesos (P200.00)

per day.

Nothing in this Act shall prevent the respective Regional Tripartite Wages and
Productivity Boards from granting additional increases to the workers and employees,
as may be determined in accordance with their mandate under Republic Act No. 6727,
otherwise known as the "Wage Rationalization Act”, as amended.

SECTION 4. Incentives to Small Enterprises. ~ To assist in their compliance with
the wage increase, small enterprises may avail of incentives from the Department of


Labor and Employment (DOLE), subject to the implementing rules and regulations of
this Act.

SECTION 5. Non-diminution of other benefits. ~ 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.

SECTION 6. Existing Exemptions. — As provided by Republic Act No. 9178, also
known as the "Barangay Micro Business Enterprises (BMBE's) Act of 2002," the
BMBEs shall be exempt from the coverage of the Minimum Wage Law. Further, as.
provided by Republic Act No. 6727, also known as the "Wage Rationalization Act,"
and relevant rules of the National Wages and Productivity Commission, the following
establishments may apply for exemption from compliance with the minimum wage
increase as provided by this Act: (a) retail or service establishments regularly
employing not more than ten (10) workers; and (b) establishments adversely affected
by natural calamities or human-induced disasters.

SECTION 7. Penalties. - 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 One hundred thousand pesos (P100,000.00) nor more than Five hundred
thousand pesos (P500,000.00) or imprisonment of not less than two years nor more
than four years, or both 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 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.

SECTION 8. Implementing Rules and Regulations. — Within sixty (60) days from
the effectivity of this Act, the DOLE shall, in coordination with other relevant
government agencies, promulgate the necessary rules and regulations for the effective
implementation of this Act.

SECTION 9. Separability Clause — If any provision or part of this Act is declared
invalid or unconstitutional, the remaining provisions or parts of this act shall remain
in full force and effect, and the application of such provision to other persons or
circumstances shall not be affected.


SECTION 10. Repealing Clause. - All laws, orders, issuances, rules, and regulations
or parts thereof inconsistent with the provisions of this Act are hereby repealed,
amended, or modified accordingly.

SECTION 11. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,