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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. ______ 
Introduced by TUCP Party-list Representative 
HON. RAYMOND DEMOCRITO C. MENDOZA 
EXPLANATORY NOTE 
Amid the triple whammy of stubbornly high inflation, poor job quality, and lack 
of new and decent jobs, the Trade Union Congress of the Philippines (TUCP) sees the 
need to file a legislated wage hike as a much-needed wage recovery effort for the eroded 
purchasing power of the wages of workers and employees in the private sector across 
the regions. We believe that this is an urgent actionable and reasonable course of 
action to take through legislation, in cognizance of our current predicament where all—
including workers as well as business—are badly hit by the surging and roller coaster 
ride of inflation and are still suffering through four crises of survival: COVID-19 
pandemic, the Russian invasion of Ukraine, looming global recession, and climate 
change concerns.  
The TUCP notes that headline inflation remains high at 8.6% in February 2023 
driven by food inflation at the national level at 11.1% mainly due to vegetable inflation 
at 33.1% and electricity inflation at 19.5%. Further, according to the Philippine 
Statistics Authority (PSA) January 2023 Labor Force Survey, unemployment increased 
to 4.8%, hence 2.37 million unemployed Filipinos. Stuck at double figures for far too 
long, underemployment further rose to 14.1% in January, hence 6.65 million 
underemployed Filipinos trapped in precarious work in the form of short-term 
contractual arrangements, ENDO jobs, low-end gig work, and job-sharing/rotation 
schemes. These are not decent jobs whose income can sustain the health and 
productivity of working families. The still-significant number of the underemployed 
shows that the situation on the ground is grimmer as poor-quality jobs, eroded incomes, 
and surging inflation largely remain unaddressed.  
Filipino workers are becoming a class of the permanently poor, struggling every 
day to eke out their bare necessities with household spending gravely impacted by 
wages real value continues to decrease due to the stubbornly high inflation. For 
instance, based on February 2023 consumer price index (CPI) figures, the purchasing 
power lost from the current minimum wages across the regions range from ₱55 to ₱89, 
averaging ₱73. Beyond recovering the purchasing power lost, it is high time that we 
seek an equity supplement for every year since 1989, when Republic Act No. 6727: 
Wage Rationalization Act was enacted, that there was no substantial wage increase, 
hence the necessity of a ₱150 wage recovery increase. 
April 17, 2023
3:48pm
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That is why this representation filed this “Wage Recovery Act of 2023” that seeks 
to provide a legislated across-the-board wage recovery increase of ₱150 in the daily 
wages of workers and employees in the private sector across the regions. It aims to 
recover the purchasing power of current wages lost to high inflation and to supplement 
for the 34 years that there was no substantial wage increase since the regional daily 
minimum wage determination mechanism was established in 1989. This bill also 
provides for wage recovery subsidies available for micro and small enterprises and 
which shall be funded through the annual appropriations of the Department of Labor 
and Employment (DOLE). Since this is merely a wage recovery effort, this does not 
preclude the filing of wage hike petitions through the Regional Tripartite Wages and 
Productivity Boards (RTWPBs) as provided by R.A. 6727: Wage Rationalization Act 
of 1989. 
This representation also filed this bill with the awareness that the historic record 
of the regional wage boards has been less than stellar. In their wage orders, we recall 
none which clearly awards increased based on the steady rise of our gross domestic 
product (GDP) and labor productivity through the years. Indeed, they have acted as a 
dampener to legitimate wage demands and essentially kept real wages stagnant.  
In light of the stubbornly high inflation that continues to erode the purchasing 
power of wages across the regions, our call in TUCP is clear—enough with poverty 
wages, put life and meaning into the principle of true family living wages! 
HON. RAYMOND DEMOCRITO C. MENDOZA 
Representative 
TUCP Party list 


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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. ______ 
Introduced by TUCP Party List  
REP. RAYMOND DEMOCRITO C. MENDOZA 
AN ACT PROVIDING FOR A 150 PESOS ACROSS-THE-BOARD  
WAGE RECOVERY INCREASE IN THE SALARY RATES OF  
EMPLOYEES AND WORKERS IN THE PRIVATE SECTOR ACROSS THE 
REGIONS AND FOR OTHER PURPOSES 
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 Recovery Act of 
2023".  
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. Across-the-Board Wage Recovery Increase. — Upon the effectivity of 
this Act, all employers in the private sector, whether agricultural or non-agricultural, 
regardless of capitalization and number of employees, shall pay their workers an across-
the-board wage recovery increase in the sum of One Hundred Fifty Pesos (₱ 150.00). 
Nothing in this Act shall prevent the respective Regional Tripartite Wages and 
Productivity Board to grant additional increases to the workers and employees on the 
basis of its determination pursuant to Republic Act No. 6727, as Amended.  
SECTION 4. Wage Recovery Subsidies. — To assist in their compliance with the wage 
recovery increase, micro and small enterprises may apply for wage subsidies, subject 
to the implementing rules and regulations (IRR) of this Act. The amount necessary for 
the funding of wage subsidies shall be included in the annual appropriations of the 
Department of Labor and Employment (DOLE).  
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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. 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 (₱100,000.00) nor more than Five Hundred 
Thousand Pesos (₱500,000.00) 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, but not 
limited to, 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 7. Implementing Rules and Regulations. — The Department of Labor and 
Employment (DOLE) and other agencies shall, within sixty (60) days after the 
effectivity of this Act, promulgate the necessary rules and regulations for the effective 
implementation of this Act. 
 
SECTION 8. Separability Clause. — If any provision or part of this Act or the 
remainder of this Act or the application of such provision or part thereof to other 
persons or circumstances shall not be affected thereby.  
 
SECTION 9. 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 10. Effectivity Clause. — This Act shall take effect within fifteen (15) days 
after its publication in the Official Gazette. 
 
Approved,