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Republic ofthe Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House Bill No, 8752

Introduced by HON. JOSEFINA B. TALLADO

AN ACT ESTABLISHING A NATIONAL MINIMUM WAGE RATE FOR PRIVATE SECTOR
WORKERS AMENDING FOR THIS PURPOSE PRESIDENTIAL DECREE NO. 442, OTHERWISE
KNOWN AS THE LABOR CODE OF THE PHILIPPINES, AS AMENDED

EXPLANATORY NOTE

With the onslaught of the COVID-19 Pandemic, particularly in the National Capital Region, there
have been several calls to encourage workers in Metro Manila to go back to their respective provinces
through the “Balik Probinsya Program.

This program is being eyed as one ofthe solutions to decongest Metro Manila and prevent easy
transmission of diseases due to overpopulation of a particular localty in as much as it would also put a
halt on nagging problems in urban areas such as worsening of traffic, uneven development, poor
‘sanitation, and dismal health care. This will also spur economic growth in the provinces.

Nevertheless, ifone is to go back to the provinces what kind of livelihood willhe have there. This
has to be solved by the government. But at present, one obstacle of the “Balik Probinsya” program is the
lating disparity of wages among the various regions in the country.

To illustrate, below is the table of the present Minimum Wage Rate as of May 4, 2020, posted in
the National Wage and Productivity Commission‘

REGION MINIMUM WAGE RATE (Range
depending on industry or location)
NCR Php 500.00 - Php 537.00
CAR Php 340.00 Php 350.00
Region 1 Php 282,00 Php 340.00
Region It Php 345.00 - Php 370.00
Region Ill Php 304.00— Php 420.00
Region IV-A Php 303.00— Php 400.00
Region IV-B Php 294,00 — Php 320.00

* https://nwpe.dole.gov.ph/, accessed on May 4, 2020


[ Region V Php 310.00
Region VI Php 310.00 — Php 395.00
Region VII Php 351.00 Php 404.00
Region Vill Php 295,00 Php 325.00
Region IX Php 303.00 Php 316.00
Region X Php 331,00— Php 365.00
Region XI Phy 381.00 Php 396.00
Region Xil Php 305,00 Php 326.00
Region XII Php 320.00
BARMM Php 290.00— Php 325.00

This wage disparity becomes even absurd when you come to terms with the fact that a worker
ina progressive city ike Legaspi in Albay will eceive a minimum wage of Php310,00 while his counterpart
in Manila is receiving Php537.00. Much more so when you consider the wide disparity between someone
Working in the Bangsamoro Autonomous Region in Muslim Mindanao who receives a meager Php290.00
while his counterpart in the National Capital Region gets Php537.00. That is a 46% percent difference in
wages.

More so, a worker in the Municipality of Caluag in Quezon is entitled to a minimum wage rate of
Php373.00? whereas in the neighboring town of Santa Elena in Camarines Norte, a similar worker will
only get Php310,003. Note that Caluag and Santa Elena are neighboring border towns of Region IV-A
and Region V but despite the proximity the workers do not receive the same rate, How ridiculous is that!

The problem also arise when one lives in the National Capital Region, say Valenzuela City, but
works in neighboring town of Obando or Meycauayan in Bulacan. While he lives in Metro Mania, the
‘wages he will receive is only Php420.00* because he happens to work in Region Ill which has a different
wage schedule compared to those in NCR.

Dignity in work becomes a farcical concept when you discriminate a worker through disparity in
wages.

Itis in this ight that this humble representation seeks a National Minimum Wage rate across
regions. Consequently, we seek the abolition of the Regional Tripartite Wages Productivity in as much
as it will become moot once @ national minimum wage is determined by the National Wages and
Productivity Commission,

In View of the foregoing, the immediate approval ofthis measure is,eamestly sought.

HON, JOSEFINA B. TALLADO
Representative
4 District , Camarines Norte

? https://nwpe.dole. gov.ph/wp-contentuploads/2018/06/reg-04-wo-18-Clarificatory-
Sf,

5 https://nwpe.dole. gov. ph/regionandwages/region-v-bicol/
4 https://nwpe.dole. gov. ph/wp-content/uploads/2018/06/Wage-Order-No.-RBIII-22,pdf



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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS.
First Regular Session

House Bill No, 6752

Introduced by HON. JOSEFINA B, TALLADO

AN ACT ESTABLISHING A NATIONAL MINIMUM WAGE RATE FOR PRIVATE SECTOR WORKERS
AMENDING FOR THIS PURPOSE PRESIDENTIAL DECREE NO. 442, OTHERWISE KNOWN AS THE
LABOR CODE OF THE PHILIPPINES, AS AMENDED

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 “National Minimum Wage Act of 2020."

‘SECTION 2. Declaration of Policy. -The 1987 Philippine Constitution, particularly, Section 3 of Article
Xill entiles workers to security of tenure, humane conditions of work, and a living wage. In recognition of
this, itis hereby declared a policy ofthe State to ensure worker’ right toa living wage and humane conditions
‘of work by obliterating regional wage disparities and improving workers’ living standards throughout all the
regions of the country.

‘SECTION 3. In light of the declared policy, Article 99 of the Labor Code of the Philippines is hereby
‘amended to read as follows:

“ART. 99. [Regional] NATIONAL Minimum Wage[s]. - The NATIONAL minimum wage
[rates] for agricultural and non-agricultural employees and workers in each and every region
of the country shall be {those] THAT prescribed by the [Regional Tripartite Wages and
Productivity Board] THE NATIONAL WAGES PRODUCTIVITY COMMISSION.”

SECTION 4, Article 121 of the Labor Code ofthe Philippines is hereby amended to read as follows:
OK

(¢) To prescribe rules and guidelines for the determination of THE appropriate GENERAL.
minimum wage and productivity measures [atthe regional, provincial, or industry levels);

(d) To [review regional wage levels set by the Tripartite Wages and Productivity Boards to]
determine [if these are] AND FIX, IN ACCORDANCE WITH THE COMMISSION'S

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GUIDELINES AND NATIONAL DEVELOPMENT PLANS, THE GENERAL MINIMUM
WAGE AND ISSUE THE CORRESPONDING WAGE ORDERS EVERY THREE (3) YEARS.

(€) xx

{(f) To review plans and programs of the Regional Tripartite Wages and Productivity Boards
to determine whether these are consistent with national development plans.)

[(g) To exercise technical and administrative supervision over the Regional Tripartite Wages
and Productivity Boards.]

[(h)] (F) To call, {from time to time] EVERY THREE (3) YEARS, a national tripartite
conference of representatives of government, workers, and employers for the deliberation
‘of ADJUSTING THE AMOUNT OF THE GENERAL MINIMUM WAGE [and], INCLUDING
MEASURES WHICH PROMOTE PRODUCTIVITY AND THE WELFARE OF WORKERS
AND EMPLOYEES; and

[(] (G) To exercise such powers and functions as may be necessary to implement this Act.
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SECTION 5. Abolition of the Regional Tripartite Wages and Productivity Board. — Article 122 of the
Labor Code of the Philippines is hereby repealed. Consequently, the Regional Tripartite Wages and
Productivity Boards (RTWPB) created by virtue of Republic Act No. 6727, otherwise known as the Wage
Rationalization Act is hereby abolished,

SECTION 6. Chapter V, Article 123 of the Labor Code of the Philippines shall hereby be amended
to read as follows:

“ART. 123, Wage Order. - [Whenever conditions in the region so warrant, [t]The
COMMISSION shall investigate and study all pertinent facts IN THE DELIBERATIONS OF
THE NATIONAL TRIPARTITE CONFERENCE; and based on the standards and criteria
herein prescribed SCRUTINIZEW WHICH AMOUNT OF THE NATIONAL MINIMUM WAGE
CAN SUITABLY CONTRIBUTE TO PROVIDE WORKERS WITH AN APPROPRIATE
MINIMUM LEVEL OF PROTECTION CONSISTENT WITH PREVAILING ECONOMIC
CONDITIONS, TO ENABLE FAIR AND FUNCTIONING CONDITIONS OF COMPETITION,
‘AND TO PRESERVE EMPLOYMENT. WHEN SETTING THE GENERAL MINIMUM WAGE,
THE COMMISSION SHALL SUBSEQUENTLY BE GUIDED BY COLLECTIVE
BARGAINING DEVELOPMENTS. Any such Wage Order SHALL BE ISSUED EVERY
THREE (3) YEARS AND shall take effect after fifteen (15) days from its complete publication
in at least one (1) newspaper of general circulation [in the region].

THE COMMISSION SHALL REGULARLY EVALUATE THE IMPACT OF THE NATIONAL
MINIMUM WAGE IN RESPECT OF THE PROTECTION OF WORKERS, CONDITIONS OF
COMPETITION, EMPLOYMENT WITH REGARD TO CERTAIN INDUSTRIES AND
REGIONS, AS WELL AS PRODUCTIVITY. THE COMMISSION SHALL FURNISH THE


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OFFICE OF THE PRESIDENT OF THE PHILIPPINES AS WELL AS BOTH HOUSES OF
CONGRESS A REPORT OF ITS FINDINGS EVERY THREE (3) YEARS.

[in the performance of its wage-determining functions, the Regional Board shall conduct
public hearings/consultations, giving notices to employees’ and employers’ groups,
provincial, city, and municipal officials and other interested parties.)

‘Any party aggrieved by the Wage Order issued by the [Regional Board] COMMISSION may
‘appeal such order to the Commission within ten (10) calendar days from the publication of
such order. It shall be mandatory for the Commission to decide such appeal within [sixty
(60)] THIRTY (30) calendar days from the fling thereof.

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‘SECTION 7. Chapter V, Article 124 of the Labor Code of the Philippines is hereby amended to read

“ART. 124, StandardsiCriteria for Minimum Wage Fixing. - The [regional] NATIONAL
minimum wage{s} o be established [by the Regional Board] shall be [as nearly] THAT WAGE
WHICH IS adequate AND as is economically feasible to maintain the minimum standards of
living necessary for RAISING THE FAMILY AND MAINTAINING ITS DECENT EXISTENCE,
PROMOTE the GOOD health, efficiency, FULFILLMENT and general well-being of the
employees within the framework of the national economic and social development program.
In the determination of such NATIONAL minimum wage, THE COMMISSION shall, among
other relevant factors, consider the following:

(@) The COST FOR PROVIDING THE FOOD, SHELTER, CLOTHING, EDUCATION,
HEALTH AND OTHER SIMILAR NECESSITIES FOR RAISING A FAMILY;

(0) [Wage adjustment vis-dvis the consumer price index] THE NECESSITY TO SAVE A
‘SMALL MARGIN OF INCOME FOR SOCIAL SECURITY AND EMERGENCIES;

(6) [The cost of ving and changes or increases therein] WAGE ADJUSTMENT VIS-A-VIS
THE CONSUMER PRICE INDEX;

(d) COST OF LIVING AND CHANGES OR INCREASES THEREIN;

(e) The need to [induce industries to invest] ENCOURAGE WORKERS TO WORK
EFFICIENTLY AND NATIONAL STANDARDS;

(f)_ Improvements in standards of living;

[(@)] The prevailing wage levels]

(G) Fair retum of the capital invested and capacity to pay of employers;

(H) Effects on employment generation and family income; and

(1) The equitable cistribution of income and wealth along the imperatives of economic and

social development.

[The wages prescribed in accordance with the provisions ofthis Tile shall be the standard
prevailing minimum wages in every region. These wages shall include wages varying with
industries, provinces or localities ifn the judgment of the Regional Board, conditions make
such local differentiation proper and necessary to effectuate the purpose ofthis Title.)


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‘Any person, company, corporation, partnership or any other entity engaged in business shall
file and register annually with the [appropriate Regional BoardJREGIONAL OFFICES OF
THE DEPARTMENT OF LABOR AND EMPLOYMENT and the [National Statistics Office]
PHILIPPINE STATISTICS AUTHORITY, an itemized listing of their labor component,
specifying the names oftheir workers and employees below the managerial level, including
learners, apprentices and disabled/handicapped workers who were hired under the terms
prescribed in the employment contracts, and their corresponding salaries and wages.

Where the application of any prescribed wage increases by virtue of a law or wage order
issued by [any Regional Board] THE COMMISSION results in distortions of the wage
structure within an establishment, the employer and the union shall negotiate to correct the
distortions. Any dispute arising from wage distortions shall be resolved through the
gtievance procedure under their collective bargaining agreement and, if it remains
Unresolved, through voluntary arbitration. Unless otherwise agreed by the parties in writing,
such dispute shall be decided by the voluntary arbitrators within ten (10) calendar days from
the time said dispute was referred to voluntary arbitration.

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‘SECTION 8. Amount ofthe National Minimum Wage. - Upon effectivity ofthis Act, the Commission
shall issue a wage order, which will be effective teen (15) days after its publication in two (2) newspapers
of general circulation, regarding the adjustment of the minimum wage to reflect that of the current real
minimum wage forthe National Capital Region (NCR.) Thereafter, the COMMISSION shall issue wage orders
with respect tothe adjustment of the amount ofthe general minimum wage every three (3) years. Provided,
That subsequent adjustments of the general minimum wage shall not be lower the amount prescribed by the
Commission in the intial wage order it will issue upon the effectivity ofthis Act.

No part of this Act shall be construed as to prejudice other wage increases through collective
bargaining.

SECTION 9. Credible Wage Increase. No wage increase arising from collective bargaining
‘agreements shall be credited as compliance with the increases prescribed under the Act.

‘SECTION 10. Prohibitions on Layoffs and Downsizing. - It shall be unlawful for any private company,
corporation, partnership, or any other private entity engaged in business that will resort to laying-off workers
‘or downsizing as a response to the payment of wage increases arising from the establishment of the national
minimum wage. Any violation of the law shall be penalized accordingly.

SECTION 11. Penalties. - Section 12 of Republic Act No. 6727, as amended by Republic Act No.
8188 is hereby further amended to read as follows:

“Section 12. Any person, corporation, trust, firm, partnership, association, or entity which
refuses or fails to pay their workers the national minimum wage set herein and any of the
succeeding legislated wage increases or adjustments with this Act shall be punished by a
fine of not less than [Twenty-five thousand pesos (P25,000.00)] ONE HUNDRED
THOUSAND PESOS (P100,000.00) nor more than [One hundred thousand pesos
(P100,000.00)] FIVE HUNDRED THOUSAND PESOS (P500,000.00) and imprisonment of


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not less than two (2) years nor more than FIVE (6) years, or both such fine and imprisonment
at the discretion ofthe court) Provided, That any person convicted under this Act shall not
be entitled to the benefits provided under the Probation Law.

The employer concemed shall be ordered to pay an amount equivalent to double the unpaid
benefits owing to the employees: Provided, That payment of indemnity shall not absolve
the employer from the criminal liabilty imposable under this Act.

FURTHERMORE, THE BUSINESS PERMIT OF THE VIOLATING ENTITY SHALL BE
SUSPENDED FOR A PERIOD OF SIX (6) MONTHS FOR THE FIRST OFFENSE; ONE (1)
YEAR FOR THE SECOND OFFENSE; AND THE REVOCATION OF THE OFFENDER'S
BUSINESS PERMIT ON THE THIRD AND FINAL OFFENSE.

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SECTION 12. Implementing Rules and Regulations. - Within sixty (60) days from the effectivity of
this Act, the Department of Labor and Employment shall promulgate the necessary rules and regutations to
implement ths Act.
SECTION 13, Separabily Clause — If for any reason, part of the provision of this Act shall be held
tobe unconstitutional or invalid, other parts or provisions hereof which are not affected thereby shall continue
‘to be in full force and effect.

SECTION 14, Repealing Clause — All laws, decrees, orders, rules, and regulations, or parts thereof,
inconsistent with the provisions ofthis Act are hereby repealed, amended, or modified accordingly.

SECTION 15. Effectivity Clause - This Act shall take effect fifteen (15) days after its publication in
the Oficial Gazette or in at least two newspapers of general circulation.

Approved.