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REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS
First Regular Session

House Bilt No,_4102

Introduced by Pangasinan Fifth District Representative
HON. RAMON N. GUICO JR,

EXPLANATORY NOTE

The Philippines is entering a critical phase of national development. With the government's Build
Better More infrastructure program in full swing and hundreds of flagship projects underway across
the regions—from expressways and railways to airports and digital connectivity—economic activity
outside Metro Manila is finally beginning to show long-term promise. Yet, despite these gains, the
reality on the ground remains unchanged for many Filipinos: job quality and compensation in the
provinces remain far below what is available in the capital.

In recent years, internal migration patterns have begun to shift. Many Filipinos have opted to return to
their home provinces in hopes of a more affordable and sustainable life. This trend, while promising,
also underscores a stark economic truth: outside the National Capital Region (NCR), job opportunities
are either too scarce or too poorly paid to keep people from returning to the cities. As a result, the
country remains caught in a self-defeating cycle—Mctro Manila continues to swell, and the
countryside continues to lag behind.

At the core of this dysfunction lies one policy failure: the persistence of unequal minimum wages
across regions.

‘The regional wage board system was established to rationalize wage setting by taking into account
local economic conditions. In theory, this allowed flexibility and faimess. But in practice, it has
institutionalized disparity. As of mid-2025, the daily minimum wage in NCR stands at P645, while in
the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM), it remains below P350.
‘Across the board, regions with the lowest wage rates are also the ones with the highest poverty
incidence, lowest productivity, and weakest access to capital—despite the fact that the cost of basic
goods and services shows little variation nationwide.

The consequence is clear: people follow opportunity, not sentiment. And when opportunity is
centralized, so too is growth. Provinces are left depleted of the very human capital needed to catalyze
development, trapping them in a cycle of underinvestment and neglect. Unless this cycle is broken, no
amount of infrastructure or investment will produce the equitable growth that national development
demands.

This measure proposes a decisive shift: the establishment of a General Minimum Wage applicable
across all regions of the Philippines. It acknowledges the simple but powerful truth that the value of a
worker's labor should not be dictated by geography. Whether one is a fishmonger in Pangasinan, a
sales clerk in Baguio, or a technician in Quezon City—their work contributes meaningfully to national
progress and must be compensated accordingly.


‘This Act secks to abolish the Regional Tripartite Wages and Productivity Boards and establish in their
stead a General Minimum Wage pegged initially to the current NCR rate at the time of the Act's
effectivity. The National Wages and Productivity Commission (NWPC) shall assume an expanded
role, tasked with issuing wage orders to adjust the minimum every three (3) years, with the express
condition that no adjustment shall result in a reduction of the existing rate. The National Tripartite
Conference shall likewise play an enhanced advisory role in setting and reviewing policy direction.
Stricter penalties will be imposed on employers who fail to comply with the law.

The path to national development is through inclusive economic growth—and no policy is more

essential to that than a wage system that treats all Filipino workers with faimess and dignity. This
measure is not merely about income; it is about justice, opportunity, and building a truly balanced

= Ros


REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS
First Regular Session

House Bill No. 4102

Introduced by Pangasinan Fifth District Representative
HON. RAMON N. GUICO JR.

AN ACT
ESTABLISHING A GENERAL 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 “General Minimum
Wage Act.”

SEC. 2. Declaration of Policy. — Article XII, Sec. 3 of the 1987 Constitution
entitle workers to security of tenure, humane conditions of work, and a living wage. In
recognition of this, the State shall adopt a general minimum wage for private sector workers
with the goal of eradicating regional wage disparities and improving workers’ living
standards throughout all the regions of the country.

SEC. 3. Chapter II, Article 99 of the Labor Code of the Philippines is hereby amended to
tead as follows:

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

SEC. 4. Chapter V, Article 121 of the Labor Code of the Philippines is hereby amended to
read as follows:

‘XXX


(©) To [prescribe] ADOPT rules and guidelines for the determination of THE
appropriate GENERAL minimum wage and productivity measures [at the
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 GUIDELINES AND NATIONAL DEVELOPMENT
PLANS, THE GENERAL MINIMUM WAGE AND ISSUE THE
CORRESPONDING WAGE ORDERS EVERY THREE (3) YEARS.

(©) xxx

[( 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.

Xxx’

SEC. 5. Abolition of the Regional Tripartite Wages and Productivity Board. ~ Article
122 of the Labor Code of the Philippines is hereby repealed. The Regional Tripartite Wages and
Productivity Boards (RTWPB) is hereby abolished.

SEC. 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 TRI-ANNUAL NATIONAL TRIPARTITE
CONFERENCE; and based on the standards and criteria herein prescribed
EXAMINE WHICH AMOUNT OF THE GENERAL MINIMUM WAGE
CAN SUITABLY CONTRIBUTE TO PROVIDING WORKERS WITH AN
APPROPRIATE MINIMUM LEVEL OF PROTECTION CONSIDERING



PREVAILING ECONOMIC CONDITIONS, TO ENABLING FAIR AND
FUNCTIONING CONDITIONS OF COMPETITION, AND WITHOUT
JEOPARDIZING 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 GENERAL 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 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 filing thereof.

xxx”

SEC. 7. Chapter V, Article 124 of the Labor Code of the Philippines is hereby amended to
read as follows:

“ART. 124, Standards/Criteria for Minimum Wage Fixing. ~The [regional]
GENERAL minimum wage{s] to be established [by the Regional Board] shall be
as nearly} adequate as is economically feasible to maintain the minimum standards
of living necessary for the GOOD health, efficiency, FULFILLMENT and
general well-being of the employees AND THEIR FAMILY within the
framework of the national economic and social development program. In the
determination of such GENERAL minimum wage, THE COMMISSION shall,
among other relevant factors, consider the following:

(a) The demand for [living wages] A FAMILY WAGE;


(b) [Wage adjustment vis-a-vis the consumer price index] THE NEED TO SAVE
A SMALL MARGIN OF INCOME FOR SOCIAL SECURITY AND
EMERGENCIES;

(c) [The cost ofliving 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] INCENTIVIEZE WORKER
PRODUCTIVITY AND EFFICIENCY;

(8) Improvements in standards of living;
[(g)] The prevailing wage levels:}

(G) Fair return of the capital invested and capacity to pay of employers;
(H) Effects on employment generation and family income; and

(D The equitable distribution of income and wealth along the imperatives of
economic and social development.

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

‘Any person, company, corporation, partnership or any other entity engaged in
business shall file and register annually with the [appropriate Regional Board]
Commission and the [National Statistics Office] PHILIPPINE STATISTICS
AUTHORITY, an itemized listing of their labor component, specifying the names
of their 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.

Xxx”

SEC. 8. Amount of the General Minimum Wage. - Upon effectivity of this Act, the
Commission shall issue a wage order, which will be effective fifteen (15) days aftr 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 for the National Capital Region (NCR.) Thereafter,


the commission shall issue wage orders with respect to the adjustment of the amount of the
general minimum wage every three (3) years. Provided, That subsequent adjustments of the
general minimum wage shall not be lower than the amount prescribed by the Commission in the
initial wage order it shall issue upon the effectivity of this Act.

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

SEC. 9. Prohibitions on Layoffs and Downsizing. ~ 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 general minimum wage shall be held in violation of the law and be penalized accordingly.

This provision shall not preclude layoffs undertaken in good faith due to legitimate
business exigencies, provided such action is supported by documentation and subject to existing
labor regulations.

SEC. 10. 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 pursuant to
this Act shall be punished by a fine of not less than [Twenty-five
thousand pesos (P25,000.00)] ONE HUNDRED AND FIFTY THOUSAND
PESOS (P150,000.00) nor more than (One hundred thousand pesos
(P100,000.00)] THREE HUNDRED THOUSAND PESOS (P300,000.00) and
imprisonment of not less than two (2) years nor more than four (4) years{,or both
such fine and imprisonment at the discretion of the court]. Provided, That any
person convicted under this Act shall not be entitled to the benefits provided
under the Probation Law.

The employer concerned 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 liability 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.

200

SEC. 11. Repealing Clause. — All laws, decrees, executive orders or parts thereof
inconsistent with the provisions of this Act are hereby repealed or modified accordingly.

SEC. 12. Separability Clause.— If any part or provision of this Act is declared invalid or
unconstitutional, the other parts not otherwise affected shall remain in full effect and force.


SEC. 13. Effectivity. — This Act shall take effect fifteen (15) days after its complete
publication in at least two (2) newspapers of general circulation.

Approved,