Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

FIFTEENTH CONGRESS
First Regular Session

House Bil No,_ 1816

Introduced by Representative Emmeline Y. Aglipay

EXPLANATORY NOTE

This bill seeks to amend Republic Act No. 9178 (R.A. 9178) or the “Barangay Micro
Business Enterprises Act of 2002” to include Barangay Micro Business Enterprises (BMBEs)
within the coverage of the Minimum Wage Law upon the lapse of a reasonable number of years
that are considered sufficient for the BMBEs to have developed a more stable and adapted

enterprise which is capable of complying with the minimum wage requirement.

BMBEs are defined in R.A. 9178 as any business entity or enterprise engaged in the
production, processing or manufacturing of products or commodities, including agro-processing,
trading and services, whose total assets including those arising from loans but exclusive of the
land on which the particular business entity's office, plant and equipment are situated, shall not
be more than Three Million Pesos (P3,000,000.00). All BMBEs are exempted from the coverage
of the Minimum Wage Law, in accordance with Section 8 of R.A. 9178. There was no period of

exemption given to the BMBEs for complying with the Minimum Wage Law, thus such

exemption is perpetual—to the detriment of the workers.

While there is a need to assist micro, small and medium scale business enterprises to
sprout, survive and expand, the government should not interminably compromise the interest and
constitutional right of the working man and woman to eam a fair “living wage” (as provided by
the minimum wage set by Regional Tripartite Wages and Productivity Boards (RTWPBs)).

The vulnerability of the BMBEs should not be perpetually favored to the prejudice of the
Filipino worker. It is recognized that the government must intervene in order to nurse BMBEs so
that more employment is generated; however the protection given to the BMBEs must expire


after a certain number of years. A proper balance must be made between the rights of labor to
protection and to a fair and decent living wage, and the corollary right of employers to
reasonable returns on investment, expansion and growth. It is submitted that a maximum period
of six (6) years is sufficient to financially sustain and stabilize BMBEs. Consequently, they must

comply with the applicable minimum wage rates after that period.

Every laborer, no matter what he or she does, should be accorded the dignity and worth
that is the very breath of labor rights.

Approval of this bill is earnestly sought.

EMMEL} at LIPAY
Representative, DIWA Party-list


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILLNo, __ 1816

Introduced by Representative Emmeline Y. Aglipay

AN ACT
LIMITING THE NUMBER OF YEARS OF EXEMPTION FROM THE COVERAGE OF
THE MINIMUM WAGE LAW GIVEN TO BARANGAY MICRO BUSINESS
ENTERPRISES (BMBEs) TO TWO (2) YEARS RENEWABLE FOR ANOTHER TWO
(2) YEARS, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 9178,
OTHERWISE KNOWN AS “THE BARANGAY MICRO BUSINESS ENTERPRISES
(BMBEs) ACT OF 2002”

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

SECTION 1. Section 8 of Republic Act No. 9178 is hereby amended to read as follows:

“SEC. 8. Exemption from the Coverage of the Minimum
Wage Law. - The BMBEs shall be exempt from the coverage of
the Minimum Wage Law DURING THE FIRST ISSUANCE OF
THE CERTIFICATE OF AUTHORITY, WHICH SHALL BE
EFFECTIVE FOR A PERIOD OF TWO (2) YEARS, Provided,
THAT THE EXEMPTION FROM THE COVERAGE OF THE
MINIMUM WAGE LAW SHALL ONLY BE GRANTED UP
TO THE NEXT TWO (2) RENEWALS OF THE
CERTIFICATE OF AUTHORITY, EACH FOR A PERIOD
OF TWO (2) YEARS.

Fhat [A]Il employees covered under this Act, shall be entitled to the
same benefits given to any regular employee such as social security
and healthcare benefits, AND OTHER BENEFITS, WHERE
APPLICABLE, THAT THEY MAY BE ENTITLED TO
UNDER THE LABOR CODE.”


SEC. 3. All laws, decrees, rules and regulations or parts thereof, which are contrary to or
inconsistent with this Act are hereby repealed or modified accordingly.

SEC. 4, If any part or provision of this Act is declared unconstitutional, the remaining
parts or provisions not affected shall remain in full force and effect.

SEC. 5. This Act shall take effect fifteen days from its publication in two national
newspapers of general circulation after its approval by the President.

Approved.