NINETEENTH CONGRESS OF THE REPUBLIC 
)
OF THE PHILIPPINES 
)
First Regular Session 
)
t-V-, , gSiiP.-'
72 JUL13 A10:05
S. No.
SENATE
459
Rl^CE:'?:) u .
Introduced by SENATOR 3INGGOY E3ERCITO ESTRADA
AN ACT
INCREASING THE PENALTIES FOR NON-COMPLIANCE OF THE 
PRESCRIBED INCREASES AND ADJUSTMENTS IN THE WAGE RATES OF 
WORKERS, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 6727, 
OTHERWISE KNOWN AS THE "WAGE RATIONALIZATION ACT," AND FOR 
OTHER PURPOSES
EXPLANATORY NOTE
Labor is a primary social economic force and as mandated by the 
Constitution, the State shall protect the rights of workers and promote their welfare.
Article XEII of the Constitution dealing with Social Justice and Human Rights 
provisions mandates the State to afford full protection to labor and guarantees that 
workers shall be entitled not only to security of tenure and humane conditions of 
work but also a living wage and participation in policy and decision-making 
processes affecting their rights and benefits as may be provided by law.
The Constitution requires the State to implement a living wage which Is 
defined as one that ensures a "decent standard of human existence beyond mere 
subsistence level" in contrast to a minimum wage which Is the basic pay or dally 
wage plus cost of living allowance received by a worker, not falling under the 
exemptions as provided under the Wage Rationalization Act.
Verily, the minimum wage fixed by law is lower than the ideal living wage. 
Still, compliance by corporations and other work establishments has remained a


persistent problem and it is very disturbing, to say the very least. With enhanced 
monitoring by the Department of Labor and Employment that Is being proposed in 
this measure, it is expected that the mantle of protection we can stretch for our 
workers will be much more assured.
It is in this light that the approval of this bill Is earnestly requested.
GGQY E3ERCITO ESTRADA


NINETEENTH CONGRESS OF THE REPUBLIC 
)
OF THE PHILIPPINES 
)
First Regular Session 
)
S. No.
SENATE
459
of li;?
72 JUL13 ra0;05
Introduced by SENATOR 3INGGOY E3ERCITO ESTRADA
AN ACT
INCREASING THE PENALTIES FOR NON-COMPLIANCE OF THE 
PRESCRIBED INCREASES AND ADJUSTMENTS IN THE WAGE RATES OF 
WORKERS, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 6727, 
OTHERWISE KNOWN AS THE "WAGE RATIONALIZATION ACT," AND FOR 
OTHER PURPOSES
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled:
1 
Section 1. Section 12 of Republic Act 6727, as further amended by Republic
2 
Act 8188, is hereby amended to read as follows:
3 
"Section 12. Any person, corporation, trust, firm,
4 
partnership, association or entity which refuses or fails to
5 
pay any of the prescribed increases or adjustments in the
6 
wage rates made in accordance with this Act shall be
7 
punished by a fine [not less than --Twcnty-five-thousaad
8 
pesos—(P25,0QQ) nor more-than One hundred- thousaft^
9 
pesos (P100,00Q.0Q)] NOT LESS THAN ONE HUNDRED
10 
THOUSAND PESOS (P100,000.00) PLUS MORAL
11 
DAMAGES NOT EXCEEDING THIRTY THOUSAND
12 
PESOS (P30,000.00) FOR EACH AFFECTED WORKER
13 
AND THE COSTS OF LITIGATION INCLUDING
14 
ATTORNEY'S FEES or imprisonment of not less than two
15 
(2) years nor more than four (4) years, or both such fine and
16 
Imprisonment at the discretion of the court: Provided, That
1


1 
any person convicted under this Act shall not be entitled to
2 
the benefits provided for under the Probation Law.
3 
"The employer concerned shall be ordered to pay an amount
4 
equivalent to double the unpaid benefits owing to the
5 
employees: Provided, That payment of indemnity shall not
6 
absolve the employer from the criminal liability imposable
7 
under this Act.
8 
"If the violation is committed by a corporation, trust or firm,
9 
partnership, association or any other entity the penalty of
10 
imprisonment shall be Imposed upon the entity's responsible
11 
officers, including, but not limited to, the president, vice-
12 
president, chief executive officer, general manager,
13 
managing director or partner.
14 
"IN CASES WHERE A FINE IS DECREED BY THE
15 
NATIONAL RELATIONS COMMISSION (NLRC)
16 
AGAINST PERSON/S WHO VIOLATED THE
17 
PROVISIONS OF THIS ACT AND CANNOT BE
18 
IMMEDIATELY SATISFIED BECAUSE OF THE REFUSAL
19 
TO PAY, OR IN CASE OF THE UNAVAILABILITY OR
20 
INADEQUACY OF FUNDS, THE BANK DEPOSITS,
21 
FINANCIAL INTERESTS AND OTHER PERSONAL
22 
PROPERTY NOT CAPABLE OF MANUAL DELIVERY IN
23 
THE POSSESSION OR CONTROL OF THIRD PARTIES
24 
OF THE OWNER IN CASE OF SOLE PROPREITORSHIP
25 
OR THE ASSETS OF THE CORPORATION,
26 
ASSOCIATIONS OR ANY OTHER ENTITY, SHALL BE
27 
AUTOMATICALLY GARNISHED. IF SUCH PROPERTIES
28 
ARE NOT ENOUGH, MOVABLE AND IMMOVABLE
29 
PROPERTIES MAYBE LEVIED TO SATISFY FULLY THE
30 
IMPOSED FINES."
31 
Sec. 2. The penalties provided under this Act shall also be applicable in cases
32 
involving workers hired by contractors undertaking infrastructure projects under R.A.


1 
6685 and in relation to DOLE Order No. 19, with respect to any violation in the
2 
payment of wages or its appropriate wage increases.
3 
Sec. 3. Separability Clause. - If any provision of this Act shall be declared
4 
unconstitutional, any other provision not affected thereby shall remain in full force
5 
and effect.
6 
Sec. 4. Repealing Clause. - Ail laws, decrees, orders, rules and regulations, or
7 
parts thereof inconsistent with this Act ate hereby repealed or amended accordingly.
8 
Sec. 5. Effectivity. - This Act shall take effect fifteen (15) days after its
9 
publication in at least two (2) national newspapers of general circulation.
Approved,