TWENTIETH CONGRESS OF THE
REPUBLIC OF THE PHILIPPINES. )
First Regular Session )

HOUSE OF REPRESENTATIVES

House Bill No. 2477

Introduced by Hon. Antonio B. Legarda, Jr.

AN ACT
ESTABLISHING THE STANDARDS FOR A LIVING WAGE, AMENDING FOR
THE PURPOSE PRESIDENTIAL DECREE NO. 442, OTHERWISE KNOWN AS
THE LABOR CODE OF THE PHILIPPINES, AS AMENDED

EXPLANATORY NOTE

Wages are the primary source of income for over half of the global workforce,
according to the International Labour Organization (ILO). Yet, millions of workers,
across the world and in the Philippines, earn wages too low to afford a decent
standard of living,

In the Philippines, this wage gap is stark. As of January 2025, the average daily
minimum wage stood at P469, while the estimated family living wage was P1,237—a
shortfall of P762 per day, based on data from the Ibon Foundation? This gap

underscores a broader 1

minimum wages are no longer enough to meet workers’
basic needs.

In 2024, the ILO finalized a global framework for the living wage, defining it as
the wage required to afford a decent standard of living, based on national

circumstances and calculated in accordance with ILO wage-setting principles?

| Retrieved June 26, 2025, from the International Labour Organization on Living Wages.

https:/ /www.ilo.org/living-wages.

2 Retrieved June 26, 2025, from the IBON Foundation. (2025, February 6). Minimum wage and family
living wage per region, as of January 2025. https:/ /www.ibon.org/flw-regl-2501/

3 Retrieved June 26, 2025, from the International Labour Organization. (2024, March 15). ILO reaches
agreement on the issue of living wages. https:/ / www :ilo.org/global/about-the-

1


Meanwhile, a 2023 global study by PwC and Wage Indicator found that only 24% of
employers currently pay a living wage, though 54% aim to do so within five years.4

In the Philippines, the 1987 Constitution (Article XIII, Section 3) clearly affirms
every worker's right to a living wage, along with security of tenure and humane
working conditions. While Republic Act No. 6727, or the Wage Rationalization Act,
recognizes the concept of a living wage in principle, its implementation has not
bridged the growing gap between nominal wages and real living costs.

This bill seeks to amend Article 124 of the Labor Code of the Philippines
(Presidential Decree No. 442) to institutionalize the living wage as the core benchmark
for regional wage-setting. It proposes a data-driven, transparent, and responsive wage
framework that ensures Filipino families can meet their essential needs — food, shelter,
healthcare, education, and meaningful participation in society.

More than three decades have passed since the wage-setting framework was
last updated. ‘The assumptions of 1989 no longer reflect today’s labor realities. This
measure brings the country’s wage policies in line with modern standards and
reaffirms our Constitutional commitment to decent work and just compensation.

In line with the policy espoused by its original proponent, Senator Loren
Legarda, this bill is being introduced as a counterpart measure. In view of the

foregoing, the immediate passage of this measure is earnestly sought.

wr betas JR.

ilo/ newsroom /news/WCMS_918717/lang—

en/index.htm#:~:text-The% 20agreement’% 20says% that % 20the,and% 20local% 20contexts% 20and%2
Osocio%2D

4 Retrieved June 26, 2025, from PwC. (2023, October). Living wage: An emerging standard.

ttps:/ /www.pwc.com/gx/en services /tax/ assets /global-living-wage-report.pdf

2


Sem yaw sone

TWENTIETH CONGRESS OF THE
REPUBLIC OF THE PHILIPPINES
First Regular Session )

HOUSE OF REPRESENTATIVES

House Bill No. 2477

Introduced by Hon. Antonio B. Legarda, Jr.

AN ACT
ESTABLISHING THE STANDARDS FOR A LIVING WAGE, AMENDING FOR
THE PURPOSE PRESIDENTIAL DECREE NO. 442, OTHERWISE KNOWN AS
THE LABOR CODE OF THE PHILIPPINES, AS AMENDED

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

Section 1. Short Title, — This Act shall be known as the “Living Wage Act”.
Sec. 2. Article 124 of Presidential Decree No. 442, as amended and renumbered,
is hereby amended to read as follows:
“ART. 124. Standards/Criteria for Minimum Wage Fixing. — The
regional minimum wages to be established by the Regional Board shall
[be-as-nearly_adequate-as-is_eeone i

LIVING WAGE THAT IS NECESSARY TO AFFORD A DECENT
STANDARD OF LIVING FOR WORKERS AND THEIR FAMILIES.
In the determination of such regional minimum wages, the Regional

Board shall, among other relevant factors, consider the following:
(a) [Fhe demand -forliving wages] ESTIMATION OF THE NEEDS
OF WORKERS AND THEIR FAMILIES, INCLUDING BUT


NOT LIMITED TO FOOD, CLOTHING, SHELTER,
HEALTHCARE, EDUCATION, CONDUCTED THROUGH
TRANSPARENT AND EVIDENCE-BASED
METHODOLOGIES IN CONSULTATION WITH
TRIPARTITE INDUSTRIAL PEACE COUNCILS (TIPCs);

() Wage adjustment vis-a-vis the consumer price index;
() [PRe] CHANGES IN the cost of living and [changes or inereases
therein] PATTERNS OF CONSUMPTION;

Ifa} The needs of workers. and their families]

{D) The need to induce industries to invest in the countryside;

(E) Improvements in standards of living;
(F) The prevailing wage levels;
(G) [Fair-return-of-the-capital_invested-and-e|Capacity to pay of

employers;

(H) Effects on employment generation and family income; and
(I) The equitable distribution of income and wealth along the
imperatives of economic and social development.

xxx”

Sec. 3. Implementing Rules and Regulations. — Within ninety (90) days from the
effectivity of this Act, the Department of Labor and Employment, in coordination with
the Tripartite Industrial Peace Councils and other relevant stakeholders, shall
promulgate the rules and regulations for the effective implementation of this Act.

Sec. 4. Separability Clause, — If any portion or provision of this Act is declared
unconstitutional, the remainder of this Act or any provision not affected thereby shall
remain in force and effect.

Sec. 5. Repealing Clause. — Any law, presidential decree or issuance, executive
order, letter of instruction, rule or regulation inconsistent with the provisions of this
Actis hereby repealed or modified accordingly.

Sec. 6. Effectivity. — This Act shall take effect after fifteen (15) days following
its complete publication in the Official Gazette or a newspaper of general circulation.

Approved,