REPRESS

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Republic ofthe Philippines lS cA
HOUSE OF REPRESENTATIVES fS RECEIVED 2
Quezon City SO pate 88 3 vr

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TWENTIETH CONGRESS \& ay ~Io &
First Regular Session ¢ . Py OS

House Bill No,_3266
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

Laborers are not treated equally in terms of compensation as the rate differs from one region
or province to another despite the reality. The wage disparity among laborers working the same
kind or amount of work but situated in different regions is evident when one looks at the
prevailing Minimum Wage Rate across the country.

To illustrate, below is the table of the present Minimum Wage Rate as of August 1, 2025,
posted in the National Wage and Productivity Commission

MINIMUM WAGE RATE (Range

REGION depending on industry or location)
NCR Php 658.00 — Php 695.00
CAR Php 470.00

Region 1 Php 435.00 ~ Php 468.00
Region II Php 460.00 — Php 480.00
Region III Php 435.00 — Php 550.00
Region IV-A. Php 425.00 - Php 560.00
Region IV-B Php 404.00 — Php 430.00
Region V Php 415.00

Region VI Php 480.00 — Php 513.00
Region VII Php 453.00 ~ Php 501.00
Region VIII Php 405.00 ~ Php 435.00
Region IX Php 401.00 — Php 414.00
Region X Php 434.00 — Php 461.00
Region XI Php 476.00 ~ Php 481.00
Region XI Php 410.00 — Php 430.00
Region XIII Php 435.00

BARMM Php 316.00 — Php 361.00



This wage disparity becomes even absurd when you come to terms with the fact that a worker in a
progressive city like Legaspi in Albay will receive a minimum wage of Php41.00 while his counterpart in
Manila is receiving Php695.00. Much more so when you consider the wide disparity between someone
‘working in the Bangsamoro Autonomous Region in Muslim Mindanao who receives a meager Php316.00
while his counterpart in the nearby Region XItl gets Php435.00.

More 0, a worker in the Municipality of Caluag in Quezon is entitled to a minimum wage rate of
Php560,00 whereas in the neighboring town of Santa Elena in Camarines Nort, a similar worker will only
get Php415.00. 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

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 Manila, the wages he
will receive is only Php550.00 because he happens to work in Region It 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 light 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 a national minimum wage is determined by the National Wages and Productivity
Commission

in view of the foregoing, the immediate approval of this measure is earnestly sought.

HON. D B. TALLADO

Representative
1 District , Camarines Norte



Republic ofthe Philippines
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS
First Regular Session

House Bill No.__ 3266
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 2025."

SECTION 2. Declaration of Policy. ~The 1987 Philippine Constitution, particularly, Section 3 of
Article XIII entitles workers to security of tenure, humane conditions of work, and a living wage. In
recognition of this, it is hereby declared a policy of the State to ensure worker’ right to a 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 ight 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 of the Philippines is hereby amended to read as
follows:

YX

(c) To prescribe rules and guidelines for the determination of THE appropriate
GENERAL minimum wage and productivity measures fat 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.


(e) xx

[(P) 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 govemment, 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.

2x!

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] {{]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 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 ofits 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.

Xxx

SECTION 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] NATIONAL
minimum wage[s] to 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:

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

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

(©)__ [The cost of living 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;

(£) Improvements in standards of living;

{(g)] 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 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|REGIONAL
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 of their workers and employees below the
managerial level, including leamers, 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
grievance 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.

OX"

SECTION 8. Amount of the National Minimum Wage, - Upon effectivity of this Act, the
Commission shall issue a wage order, which will be effective fifteen (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 for the National Capital Region (NCR.) Thereafter, the COMMISSION
shall issue wage orders with respect tothe adjustment ofthe amount of the 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 initial wage order it wll 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 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 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 not less than two (2) years nor more than FIVE (5) 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
SECTION 11. 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
regulations to implement this Act.

SECTION 12. Separability Clause — If for any reason, part of the provision of this Act shall be
held to be unconstitutional or invalid, other parts or provisions hereof which are not affected thereby shall
continue to be in full force and effect.

SECTION 13. Repealing Clause - All laws, decrees, orders, rules, and regulations, or parts
thereof, inconsistent with the provisions of this Act are hereby repealed, amended, or modified
accordingly.

SECTION 14. Effectivity Clause - This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in at least two newspapers of general circulation

Approved.