1 
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Batasan Hills, Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL No. 3553 
-------------------------------------------------------------------------------------------------------- 
Introduced by  
ACT Teachers Party-List Rep. ANTONIO L. TINIO 
and KABATAAN Party-List Rep. RENEE LOUISE M. CO 
-------------------------------------------------------------------------------------------------------- 
AN ACT 
ESTABLISHING A NATIONAL MINIMUM WAGE FOR  
PRIVATE AND PUBLIC SECTOR WORKERS AND IMPOSING STIFFER 
PENALTIES FOR VIOLATIONS THEREOF, AMENDING FOR THIS 
PURPOSE THE LABOR CODE OF THE PHILIPPINES   
EXPLANATORY NOTE 
When President Cory Aquino signed into law Republic Act 6727 in 1989, the 
country abandoned the old practice of legislating national minimum wage and entered 
into the regime of regional wage boards setting the wage increases for workers in each 
region. The Aquino administration justified this setup as “wage rationalization.” 
But results were contrary to the avowed end. Wage rationalization created an 
irrational system—anti-worker, detached from evolving economic realities, unjust, and 
has sabotaged rather than encouraged the establishment of decent minimum wages 
across the country.  To start with, the wage boards were not really intended to rationalize 
wages. They have been actually weaponized to keep the wages of workers low as part 
of the “come-on package” of the Aquino government to attract foreign investors in its 
foreign investments-led economic programs that dispersed industries in the regions, 
which later were expanded into “regional industrial centers,” “agriculture and fisheries 
development zones” and “growth areas” by succeeding administrations. 
This was the real rationale that animated the wage boards and it continues to 
animate them to this day.  They conducted no independent in-depth studies that would 
have informed them and the workers of the minimum level of living wage that workers 
should receive in the light of soaring price increases of goods and services.  If they did 
any study at all, it was only for deciding particular petitions for wage increases per 
August 12, 2025
11:39 am


2 
region.   Even with this, they are passive instruments for deciding wage increases.  They 
are slow to react to movements in the market and to the periodic economic crises that 
hit the country in 1998, 2008, and 2020. 
The irrationality of wage rationalization became even more evident when the 
build-up of investment zoning of the regions to attract foreign investments had 
connected local markets to capital cities in the regions and the regions to Metro Manila 
that significant differences in prices of goods and services across areas were dissolved.  
Investment zoning, in fact, became the vehicle for monopolies and cartel-type 
commercial operations to penetrate the regions, enabling them to fix prices not just in 
certain localities but in all corners of the country.  Consequently, workers across the 
country now buy from one big monopoly-dominated market where price differences 
across regions are minimal if not non-existent. One example is the price of rice, an 
everyday staple of the Filipino people, including ordinary wage-earners.  To date, there 
is no longer any significant variation of rice prices between the regions and Metro 
Manila. 
Since their creation, the 17 Regional Tripartite Wages and Productivity Boards 
(RTWPBs) have issued a total of 390 wage orders since 1990. These issuances had 
increased the wages of Filipino workers from the 1989 national minimum wage of 
₱89.00 per day to today’s 17 different regional minimum wage scales, ranging from as 
high as ₱645 per day in the National Capital Region (NCR) to as low as ₱361 per day 
in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM).  On the 
average, the minimum wage in the country amounts to ₱470.00 per day.   This means 
that the Filipino workers as a class received only an average real increase of ₱381 per 
day since 1989 or during the entire thirty-six-year regime of regionalized minimum 
wage.  An increase of 428% is not something to crow about, considering that in those 
nearly four decades, inflation in food and non-food necessities was felt daily. For 
instance, the prices of basic necessities soared since 1989: 
Basic needs item 
1989 price 2024 price 
% increase 
Rice (regular-milled) 
per 
kilo 
₱   7.00 
₱   50.00 
614% 
Meat (liempo) per kilo 
₱ 60.00 
₱ 343.00 
472% 
Fish (galunggong) per kilo 
₱ 20.00 
₱ 202.00 
910% 
Egg (medium) per piece 
₱   1.50 
₱     9.00 
500% 
Source: Philippine Statistics Authority 
Obviously, while the regional minimum wage rates increased by hesitant small 
steps as their formation has been obstructed by RTWPBs, the prices of basic goods and 
services increased by wild leaps and bounds across the country, unchecked by any 
government intervention.  This resulted in a widening gap between the minimum wage 
and the cost of living. 
According to the IBON Foundation, a daily income of ₱1,216 per day is now 
required to sustain the needs of a family of five (estimate as of May 2025).  Given the 


3 
pace of wage increases through the thirty-six-year period of the regime of regionalized 
wages, this is a gap that no worker in the country can ever hope to close even if the 
reference is the highest regional minimum wage of ₱645 per day in the NCR. 
The reality on the ground is that the current levels of wages per region do not 
answer the basic daily needs of workers’ families.  It is also not commensurate with the 
contribution of labor to the economy.  Since 1991, labor productivity across all sectors 
has increased from ₱60,342 in 1991 to ₱423,408 in 2018, a whopping 600% increase 
of labor productivity. 
Republic Act 6727 laid down ten factors for RTWPBs to consider in setting the 
wage increases in their respective regions.  But the drafting of  wage orders lack 
transparency:  Do the RTPWBs really balance or consider the interplay of several 
factors such as current and projected inflation in setting wage increases?  It is hard to 
appreciate the rationality of wage orders in the light of those ten factors. 
Under RA 6727, the RTWPBs are allowed to issue wage increase orders once a 
year.  The one-year limit is by itself irrational considering the volatile movement of 
prices, especially oil and other petroleum products, but there were instances of intervals 
of several years that, without any reason, the RTWPBs across all regions did not issue 
any wage orders so that workers did not receive any wage increase during those 
intervals.  In many instances, some RTWPBs issued wage orders while other RTWPBs 
did not.  This is because RTWPBs are generally petition-driven although they have the 
power to initiate motu proprio the process of deciding wage increases.  When there were 
no petitions, there were no wage increases.  In some cases, RTWPBs even set 
differentiated wage increases for the provinces, cities, and major towns covered by their 
jurisdictions, ostensibly to avert wage distortion. 
In other instances, some RTWPBs issued wage orders that granted only cost-of-
living allowances (COLAs) while others ordered wage increases.  Some RTWPBs 
separated the COLAs, others ordered their integration to the daily wage and then 
suddenly removed the COLAs on their next wage order.  Given these variances, it 
appears that RTWPBs do not have a unified understanding of the criteria the law had 
set for determining wage increases. 
When Region IV-B was still part of Region IV, it used to enjoy the same 
minimum wage scale with Region IV-A. When it became a separate region, a succession 
of wage orders lowered its minimum wage scale through pittance increases until it 
finally lagged so far behind from Region IV-A by ₱46 to ₱130 per day (₱404 to ₱430 
per day in Region IV-B as against ₱450 to ₱560 per day in Region IV-A). 
The irrationality of the regionalized minimum wage scheme is brought to focus 
if we note that the poorest regions in the country have the lowest levels of minimum 
wage.  The fact that the prices of petroleum products generally get higher as the one 
goes farther from Metro Manila exposes the unfairness to the non-NCR regions and the 
iniquities of the present regionalized wage regime.  This is telling of the unjust theory 


4 
behind the scheme: a worker living in dirt-poor areas in BARMM is not entitled to the 
wages that workers earn in high-standard and well-off Metro Manila even though that 
worker has the same productivity skills, suffers the same high cost of living as his or 
her counterparts in Metro Manila.  This injustice feeds on another injustice: it preserves 
the economic inequality among regions and in effect perpetuates the poverty of those 
poor regions and their workers. 
Wages are supposed to represent the “value” of labor power.  But it is one of the 
injustices of our times that the prices of commodities automatically move up and down 
according to market dictates, unfettered by government, workers have to fight for wage 
increases, often facing the opposition of government.  It is thus the duty of the State and 
society to create that level playing field on which workers can fairly fight for their 
minimum wage and through which the real price of labor power can freely assume form 
according to the motions of prices.  Instead of creating that level playing field, the wage 
rationalization scheme, as embodied by regional wage boards, destroyed it.  It not only 
weakened the power of workers to fight for just wages as one whole organized mass but 
also closed the arena for the workers to take their fight fairly. 
Filipino workers have weighed in on the regionalized wage regime through 
thirty-six-year history and found it a big failure.  They are now demanding that it be 
scrapped and for the Philippines to return to the regime of uniform national minimum 
wage that is based on the family living wage. 
The 19th Congress failed to pass a legislated wage increase despite the demand 
of Filipino workers.  It failed to harmonize the differences of House Bill 10319 and 
Senate Bill 2534, which would have provided for a ₱100 and ₱200 increase in minimum 
wage, respectively.  Moreover, the economic managers of the Marcos administration 
are opposing the meager wage increase alleging possible inflationary impacts. 
On the contrary, the study of IBON Foundation shows that the amount needed 
to raise the current minimum wage to ₱1,200 living wage is doable if the employers 
deduct it from their huge profits and do not pass it on to consumers.  The needed wage 
increase only requires 29.7% to 49.1% of the profits amassed by private employers. 
That demand assumes utmost urgency given the harsh impact of the Tax Reform 
for Acceleration and Inclusion (TRAIN) Law on wages.  The surge in the prices of oil 
and other basic goods and services in the last several years likewise has devoured, 
according to some estimates, the wages of our workers by 25-30%.  Workers are now 
groaning under the crushing effect of heavy taxes and high prices on their wages and 
income.  Despite this, the Marcos, Jr. administration is imposing new regressive taxes, 
like the value-added tax on digital services, against the ordinary consumers while 
lowering the corporate income taxes and granting more fiscal incentives to local and 
foreign companies. 
It is therefore imperative for the State to ensure that what the Constitution 
guarantees—the workers’ just share in the fruits of production and the workers’ right to 


5 
living wage—is fulfilled in pursuit of the equitable distribution of income and wealth 
towards economic and social development.  The State must recognize its justice and 
necessity given the workers’ contribution to society and the economy amidst all the 
hardships and challenges. 
 
Finally, this Bill also seeks to impose stiffer penalties for companies that do not 
follow the national minimum wage. 
 
In view of the foregoing, the passage of this Bill is earnestly sought. 
 
 
 
 
 
 
 
 
 
________________________________ 
Rep. ANTONIO L. TINIO 
ACT Teachers Party-List 
 
 
________________________________ 
Rep. RENEE LOUISE M. CO 
KABATAAN Party-List 
 
 


1 
1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
38 
39 
40 
41 
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Batasan Hills, Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL No. 3553 
-------------------------------------------------------------------------------------------------------- 
Introduced by  
ACT Teachers Party-List Rep. ANTONIO L. TINIO 
and KABATAAN Party-List Rep. RENEE LOUISE M. CO 
-------------------------------------------------------------------------------------------------------- 
AN ACT 
ESTABLISHING A NATIONAL MINIMUM WAGE FOR  
PRIVATE AND PUBLIC SECTOR WORKERS AND IMPOSING STIFFER 
PENALTIES FOR VIOLATIONS THEREOF, AMENDING FOR THIS 
PURPOSE THE LABOR CODE OF THE PHILIPPINES   
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.” 
SEC. 2. Declaration of Policy. It is hereby declared the policy of the State to ensure 
workers’ right to a living wage and to humane conditions of work.  
In order to promote a living wage for the workers in the public and private sectors, the 
State adopts and hereby institutionalizes the legislation of a national minimum wage as 
the primary mode of setting wages for public and private sector workers in the country 
and to address regional wage disparities and to unify wage levels across regions with 
the national economic and social development plans.  In firms and establishments where 
terms and conditions on wages are mandated by collective bargaining agreements, 
diminution of wages and benefits shall in no case result from the enactment or 
establishment of national wage increases. 
SEC. 3. Definition of terms. As used in this Act, the following terms shall mean: 
42 
43 
(a) Worker refers to any natural person in the employ of another or a juridical
44 
person, whether in the public sector or private sector, including ambulant,
45 
intermittent, self-employed, rural workers, and those without definite employers,
46 


2 
regardless of their employment status, tenure, or nature of agreements or 
1 
contracts. 
2 
3 
(b) Family living wage refers to the amount of family income needed to provide for
4 
the family’s food and non-food expenditures with sufficient allowance for
5 
savings/investments for social security so as to enable the family to live and
6 
maintain a decent standard of human existence beyond mere subsistence level,
7 
taking into account all of the family’s physiological, social and other needs.
8 
9 
(c) Wage distortion is a situation where an increase in prescribed wage results in
10 
the elimination or severe contraction of intentional quantitative differences in
11 
wage or salary rates between and among employee groups in an establishment
12 
as to effectively obliterate the distinctions embodied in such wage structure
13 
based on skills, length of service, or other logical bases of differentiation.
14 
15 
SEC. 4. National Minimum Wage. In line with this declared policy, Article 99 of the 
16 
Labor Code is hereby amended to read as follows: 
17 
18 
ART. 99. [Regional] NATIONAL minimum wage[s]. - The NATIONAL 
19 
minimum wage [rates] for agricultural and non-agricultural employees and 
20 
workers across the country shall be [those] THAT prescribed by [the Regional 
21 
Tripartite Wages and Productivity Boards] THE NATIONAL WAGES AND 
22 
PRODUCTIVITY BOARD (NWPB) THROUGH A WAGE ORDER, BY 
23 
CONGRESS THROUGH LEGISLATED WAGE INCREASE, OR BY 
24 
THE PRESIDENT THROUGH AN EXECUTIVE ORDER. 
25 
26 
THE NATIONAL MINIMUM WAGE SHALL APPLY TO ALL 
27 
ENTERPRISES, INCLUDING SPECIAL ECONOMIC ZONES (SEZs), 
28 
REGARDLESS 
OF 
LOCATION, 
SIZE, 
OR 
INDUSTRY 
29 
CLASSIFICATION.  LIKEWISE, IT SHALL APPLY TO WORKERS IN 
30 
NON-REGULAR EMPLOYMENT. 
31 
32 
THE NATIONAL MINIMUM WAGE SET BY THE NWPB SHALL BE 
33 
THE BASIS FOR THE MINIMUM SALARY IN THE PUBLIC SECTOR. 
34 
THE DEPARTMENT OF BUDGET AND MANAGEMENT SHALL 
35 
ADJUST THE MONTHLY SALARY SCHEDULE ACCORDINGLY. 
36 
37 
SEC. 5. Creation of the National Wages and Productivity Board. The National Wages 
38 
and Productivity Commission shall be renamed as the National Wages Productivity 
39 
Board (NWPB).  Articles 120 and 121 of the Labor Code, as amended, is hereby 
40 
amended as follows: 
41 
42 
ART. 120. Creation of the National Wages and Productivity [Commission] 
43 
BOARD. - There is hereby created a National Wages and Productivity 
44 
[Commission] BOARD, hereinafter referred to as the [Commission] BOARD, 
45 


3 
which shall be attached to the Department of Labor and Employment (DOLE) 
1 
for policy and program coordination. 
2 
 
3 
ART. 121. Powers and Functions of the [Commission] BOARD. - The 
4 
[Commission] BOARD shall have the following powers and functions: 
5 
 
6 
(a) To act as the national consultative and advisory body to the President of the 
7 
Philippines and Congress on matters relating to wages, incomes and 
8 
productivity; 
9 
 
10 
(b) To formulate policies and guidelines on wages, incomes and productivity 
11 
improvement at the enterprise, industry and national levels; 
12 
 
13 
(c) To prescribe rules and guidelines for the determination of THE appropriate 
14 
minimum wage and productivity measures at the [regional, provincial or 
15 
industry] NATIONAL level[s]; 
16 
 
17 
(D) TO DETERMINE AND PRESCRIBE ADJUSTMENTS TO THE 
18 
NATIONAL MINIMUM WAGE; 
19 
 
20 
(E) TO ISSUE WAGE ORDERS; 
21 
 
22 
[(d) To review regional wage levels set by the Regional Tripartite Wages and 
23 
Productivity Boards to determine if these are in accordance with prescribed 
24 
guidelines and national development plans;] 
25 
 
26 
[(e)] (F) To undertake studies, researches and surveys necessary for the 
27 
attainment of its functions and objectives, and to collect and compile data and 
28 
periodically disseminate information on wages and productivity and other 
29 
related information, including, but not limited to, employment, cost of living, 
30 
labor costs, investments and returns; 
31 
 
32 
[(f) To review plans and programs of the Regional Tripartite Wages and 
33 
Productivity Boards to determine whether these are consistent with national 
34 
development plans;] 
35 
 
36 
[(g) To exercise technical and administrative supervision over the Regional 
37 
Tripartite Wages and Productivity Boards;] 
38 
 
39 
[(h)] (G) To [call, from time to time,] CONVENE a national tripartite 
40 
conference of representatives of government, workers and employers for the 
41 
consideration of measures to promote higher wages and improved standards of 
42 
living. The national tripartite conference on wages shall be convened on an 
43 
annual basis, or as the situation demands it; 
44 
 
45 


4 
[(i)] (H) To exercise such powers and functions as may be necessary to 
1 
implement this Act. 
2 
 
3 
The [Commission] BOARD shall be composed of the Secretary of Labor and 
4 
Employment as ex officio chairman, the [Director General of the National 
5 
Economic and Development Authority (NEDA)] SECRETARY OF 
6 
ECONOMY, PLANNING, AND DEVELOPMENT as ex officio vice-
7 
chairman, SECRETARY OF BUDGET AND MANAGEMENT AND CIVIL 
8 
SERVICE COMMISSIONER AS EX OFFICIO MEMBERS, and [two (2)] 
9 
SEVEN (7) members [each] from the PUBLIC AND PRIVATE workers 
10 
SECTOR, and TWO (2) from the employers sector[s] upon recommendation of 
11 
the Secretary of Labor and Employment, to be made on the basis of the list of 
12 
nominees submitted by the workers and employers sectors, respectively, and 
13 
who shall serve for a term of five (5) years. The Executive Director of the 
14 
[Commission] BOARD shall also be a member of the [Commission] BOARD. 
15 
 
16 
The [Commission] BOARD shall be assisted by a Secretariat to be headed by an 
17 
Executive Director and two (2) Deputy Directors, who shall be appointed by the 
18 
President of the Philippines, upon the recommendation of the Secretary of Labor 
19 
and Employment. 
20 
 
21 
The Executive Director shall have the same rank, salary, benefits and other 
22 
emoluments as that of a Department Assistant Secretary, while the Deputy 
23 
Directors shall have the same rank, salary, benefits and other emoluments as that 
24 
of a Bureau Director. The members of the [Commission] BOARD representing 
25 
labor and management shall have the same rank, emoluments, allowances and 
26 
other benefits as those prescribed by law for labor and management 
27 
representatives in the Employees’ Compensation Commission. 
28 
 
29 
SEC. 6. Wage Order. Articles 123 of the Labor Code, as amended, is hereby amended 
30 
to read as follows: 
31 
 
32 
Art. 123. Wage Order. — Whenever conditions [in the region] warrant, the 
33 
NWPB [Regional Board] shall investigate and study all pertinent facts[;], and 
34 
based on the standards and criteria herein prescribed, shall proceed to determine 
35 
whether a Wage Order should be issued.  Any such Wage Order shall take effect 
36 
after fifteen (15) days from its complete publication in at least one (1) newspaper 
37 
of general circulation[ in the region]. 
38 
 
39 
In the performance of its wage determining functions, the NWPB [Regional 
40 
Board] shall conduct public hearings/consultations, giving notices to employees’ 
41 
and employers' groups, provincial, city and municipal officials and other 
42 
interested parties. 
43 
 
44 
Any party aggrieved by the Wage Order issued by the NWPB [Regional Board] 
45 
may appeal such order to the Commission within ten (10) calendar days from the 
46 


5 
publication of such order.  It shall be mandatory for the NWPB [Commission] 
1 
to decide such appeal within sixty (60) calendar days from the filing thereof. 
2 
 
3 
The filing of the appeal does not stay the order unless the person appealing such 
4 
order shall file with the NWPB [Commission] an undertaking with a surety or 
5 
sureties satisfactory to the Commission for the payment to the employees 
6 
affected by the order of the corresponding increase, in the event such order is 
7 
affirmed. 
8 
 
9 
SEC. 7. Abolition of the Regional Tripartite Wages and Productivity Board. Articles 
10 
122 of the Labor Code, as amended, are hereby repealed. Hence, the Regional Tripartite 
11 
Wages and Productivity Boards (RTWPB) created under Republic Act 6727 are hereby 
12 
abolished.  
13 
 
14 
SEC. 8. Standards for national minimum wage fixing. Article 124 of the Labor Code 
15 
is hereby amended and renumbered to read as follows:  
16 
 
17 
“ART. [124] 122. - The [regional] NATIONAL minimum wage[s] to be 
18 
established [by the Regional Board] shall be [as nearly adequate as is 
19 
economically feasible to maintain the minimum standards of living necessary for 
20 
the health, efficiency and general well-being of the employees within the 
21 
framework of the national economic and social development program.] THAT 
22 
WAGE RATE NECESSARY FOR RAISING A FAMILY AND 
23 
MAINTAINING ITS DECENT EXISTENCE.  IT SHALL BE OF SUCH 
24 
AMOUNT WHICH IS SUFFICIENT FOR A WORKER TO PROVIDE 
25 
THEIR FAMILY THE BASIC AND NECESSARY EXPENDITURES 
26 
THAT TAKE INTO CONSIDERATION ALL OF THEIR FAMILY’S 
27 
PHYSIOLOGICAL, SOCIAL AND OTHER NEEDS, SO AS TO ENABLE 
28 
THEM TO LIVE AND MAINTAIN A DECENT STANDARD OF LIVING 
29 
BEYOND MERE SUBSISTENCE, WITH ADEQUATE ALLOWANCE 
30 
FOR SOCIAL SECURITY.  In the determination of such [regional] 
31 
NATIONAL minimum wage[s], the [Regional Board] NWPB AND 
32 
CONGRESS shall, among other relevant factors, consider the following: 
33 
 
34 
(a) The [demand for] RIGHT TO living wages; 
35 
 
36 
(b) THE COST FOR PROVIDING THE FOOD, CLOTHING, SHELTER, 
37 
EDUCATION, HEALTH MAINTENANCE, AND OTHER NON-FOOD 
38 
NECESSITIES FOR RAISING THE FAMILY OF A WORKER; 
39 
 
40 
(c) 
[Wage 
adjustment 
vis-a-vis 
the 
consumer 
price 
index] 
THE 
41 
PHYSIOLOGICAL, SOCIAL, AND OTHER RELATED NEEDS OF 
42 
WORKERS AND THEIR FAMILIES; 
43 
 
44 
(d) [The cost of living and changes or increases therein] MOVEMENTS IN 
45 
THE CONSUMER PRICE INDEX; 
46 


6 
 
1 
(e) The [needs of workers and their families] COST OF LIVING AND 
2 
CHANGES OR INCREASES IN THEM;  
3 
 
4 
[(e) The need to induce industries to invest in the countryside;] 
5 
 
6 
(f) Improvements in standards of living; AND 
7 
 
8 
[(g) The prevailing wage levels;] 
9 
 
10 
[(h) Fair return of the capital invested and capacity to pay of employers;] 
11 
 
12 
[(F) Effects on employment generation and family income; and] 
13 
 
14 
(g) The equitable distribution of income and wealth along the imperatives of 
15 
economic and social development. 
16 
 
17 
[The wages prescribed in accordance with the provisions of this Title shall be the 
18 
standard prevailing minimum wages in every region. These wages shall include 
19 
wages varying with industries, provinces or localities if in the judgment of the 
20 
Regional Board, conditions make such local differentiation proper and necessary 
21 
to effectuate the purpose of this Title.] 
22 
 
23 
Any person, company, corporation, partnership or any other entity engaged in 
24 
business shall file and register annually with the appropriate [Regional Wage 
25 
Boards, Commission] REGIONAL OFFICE OF THE DEPARTMENT OF 
26 
LABOR AND EMPLOYMENT and the [National Statistics Office] 
27 
PHILIPPINE STATISTICS AUTHORITY (PSA), an itemized listing of their 
28 
labor component, specifying the names of their workers and employees below 
29 
the managerial level, including learners, apprentices and [disabled/handicapped] 
30 
workers WITH DISABILITIES who were hired under the terms prescribed in 
31 
the employment contracts, and their corresponding salaries and wages. 
32 
 
33 
Where the application of any prescribed wage increase by virtue of a law or wage 
34 
order issued by NWPB [any Regional Board] results in distortions of the wage 
35 
structure within an establishment, the employer and the union shall negotiate to 
36 
correct the distortions.  Any dispute arising from wage distortions shall be 
37 
resolved through the grievance procedure under their collective bargaining 
38 
agreement and, if it remains unresolved, through voluntary arbitration.  Unless 
39 
otherwise agreed by the parties in writing, such dispute shall be decided by the 
40 
voluntary arbitrators within ten (10) calendar days from the time said dispute 
41 
was referred to voluntary arbitration. 
42 
 
43 
In cases where there are no collective agreements or recognized labor unions, the 
44 
employers and workers shall endeavor to correct such distortions. Any dispute 
45 
arising therefrom shall be settled through the National Conciliation and 
46 


7 
Mediation Board and, if it remains unresolved after ten (10) calendar days of 
1 
conciliation, shall be referred to the [appropriate branch of the National Labor 
2 
Relations Commission (NLRC)]  SECRETARY OF THE DEPARTMENT 
3 
OF LABOR AND EMPLOYMENT. It shall be mandatory for the [NLRC] 
4 
DOLE SECRETARY to conduct continuous hearings and decide the dispute 
5 
within twenty (20) calendar days from the time said dispute is submitted for 
6 
compulsory arbitration. 
7 
 
8 
The pendency of a dispute arising from a wage distortion shall not in any way 
9 
delay the applicability of any increase in prescribed wage rates pursuant to the 
10 
provisions of law or wage order. 
11 
 
12 
As used herein, a wage distortion shall mean a situation where an increase in 
13 
prescribed wage rates results in the elimination or severe contraction of 
14 
intentional quantitative differences in wage or salary rates between and among 
15 
employee groups in an establishment as to effectively obliterate the distinctions 
16 
embodied in such wage structure based on skills, length of service, or other 
17 
logical bases of differentiation.  
18 
 
19 
All workers paid by result, including those who are paid on piecework, takay, 
20 
pakyaw or task basis, shall receive not less than the prescribed wage rates per 
21 
eight (8) hours of work a day, or a proportion thereof for working less than eight 
22 
(8) hours. 
23 
 
24 
All recognized learnership and apprenticeship agreements shall be considered 
25 
automatically modified insofar as their wage clauses are concerned to reflect the 
26 
prescribed wage rates. 
27 
 
28 
SEC. 9. Amount of National Minimum Wage. Upon effectivity of this Act, the daily 
29 
statutory minimum wages of private sector workers in both agricultural and non-
30 
agricultural enterprises nationwide shall be increased to a uniform national minimum 
31 
wage rate to be prescribed by the NWPB, the amount of which shall approximate if not 
32 
equate the prevailing family living wage, which currently amounts to One Thousand 
33 
Two Hundred Pesos (P1,200.00) per day. Provided, that the wage increases arising from 
34 
the new national minimum wage rate should not prejudice other wage increases through 
35 
collective bargaining.  
36 
 
37 
Subsequent to the implementation of a uniform national minimum wage rate, the 
38 
national minimum wage shall be adjusted on an annual basis, or when a supervening 
39 
event arises such as extraordinary increase in prices of petroleum and basic goods and 
40 
services. 
41 
 
42 
SEC. 10. Implications on learners, apprentices, project employees, and workers paid 
43 
by results. All workers paid by result, including those who are paid on piecework, takay, 
44 
pakyaw or task basis, shall receive not less than the prescribed national minimum wage 
45 


8 
per eight (8) hours of work or a portion thereof for the hours worked or outputs 
1 
produced. 
2 
 
3 
All recognized learnership and apprenticeship agreements shall be considered 
4 
automatically modified insofar as their wage clauses are concerned to reflect the 
5 
prescribed national minimum wage. 
6 
 
7 
Project employees and seasonal employees shall be entitled to the prescribed national 
8 
minimum wage. 
9 
 
10 
SEC. 11. Credible Wage Increase. No wage increase arising from collective bargaining 
11 
agreements shall be credited as compliance with the increases prescribed under the Act.   
12 
 
13 
SEC. 12. Prohibition on layoffs and downsizing. It shall be unlawful for a company, 
14 
corporation, partnership or any other entity engaged in business to lay off workers or 
15 
resort to downsizing on the mere basis of complying to the payment of wage increases 
16 
arising from the establishment of the national minimum wage.  
17 
 
18 
SEC. 13. Terms of service of the secretariat of RTWPB. The terms of service of the 
19 
members of the secretariat of all Regional Tripartite Wages and Productivity Boards 
20 
(RTWPBs) shall cease upon the effectivity of this Act. Provided, That the members of 
21 
the secretariat shall be given preference for appointment to the new positions in 
22 
government agencies and bureaus, in line with existing rules by the Civil Service 
23 
Commission (CSC). 
24 
 
25 
SEC. 14. Wage subsidies. Micro- and small- enterprises who may not be able to pay 
26 
the new national minimum wage may apply for wage subsidies which shall be a fraction 
27 
of the new national minimum wage, subject to the implementing rules and regulations 
28 
(IRR) of this Act. 
29 
 
30 
The amount necessary for the funding of wage subsidies shall be included in the annual 
31 
appropriations of the Department of Labor and Employment (DOLE). 
32 
 
33 
SEC. 15. Non-diminution of benefits. - Nothing in this Act shall be construed as to 
34 
diminish or discontinue existing benefits currently enjoyed whether or not these are 
35 
granted under collective bargaining agreements (CBA) or present laws. 
36 
 
37 
SEC. 16. Penalties. - Section 12 of Republic Act No. 6727 which was amended by 
38 
Section 1 of Republic Act No. 8188 is hereby further amended to read as follows:  
39 
 
40 
“Section 12. Any person, corporation, trust, firm, partnership, association or 
41 
entity which refuses or fails to pay [any of the prescribed] THEIR WORKERS 
42 
THE NATIONAL MINIMUM WAGE SET HEREIN AND ANY OF THE 
43 
SUCCEEDING LEGISLATED WAGE increases or adjustments [in the wage 
44 
rates] made in accordance with this Act shall be punished by a fine [not less than 
45 
Twenty-five thousand pesos (P25,000.00) nor more than One-hundred thousand 
46 


9 
pesos (P100,000.00)] WHICH SHALL BE FIXED AT ONE HUNDRED 
1 
PERCENT (100%) OF THE TOTAL AMOUNT OF THE WAGE 
2 
INCREMENT DUE THE EMPLOYEES TO BE MULTIPLIED BY THE 
3 
NUMBER OF WORKING DAYS THE WAGE INCREMENT HAS BEEN 
4 
UNPAID TO THE EMPLOYEES or imprisonment of not less than [two (2)] 
5 
THREE (3) years nor more than [four (4)] FIVE (5) years, or both such fine and 
6 
imprisonment at the discretion of the court. Provided, That any person convicted 
7 
under this Act shall not be entitled to the benefits provided for under the 
8 
Probation Law. 
9 
 
10 
The employer concerned shall be ordered to PAY THE EMPLOYEES 
11 
MORAL DAMAGES OF FIFTY THOUSAND PESOS (P50,000.00) EACH 
12 
EMPLOYEE PLUS an amount equivalent to double the unpaid benefits owing 
13 
to the employees: Provided, That payment of indemnity shall not absolve the 
14 
employer from the criminal liability imposable under this Act. 
15 
 
16 
FURTHERMORE, THE BUSINESS PERMIT OF THE VIOLATING 
17 
ENTITY SHALL BE SUSPENDED FOR ONE (1) MONTH TO THREE (3) 
18 
YEARS FOR SECOND OFFENSE; FOR THIRD OFFENSES, THE 
19 
BUSINESS PERMIT OF THE OFFENDER SHALL BE REVOKED. 
20 
 
21 
If the violation is committed by a corporation, trust or firm, partnership, 
22 
association or any other entity the penalty of imprisonment shall be imposed 
23 
upon the entity's responsible officers, including, but not limited to, the president, 
24 
vice-president, chief executive officer, general manager, managing director or 
25 
partner. 
26 
 
27 
THE DEPARTMENT OF LABOR AND EMPLOYMENT SHALL HAVE 
28 
THE AUTHORITY TO IMPOSE SUCH OTHER ADMINISTRATIVE 
29 
PENALTIES 
IT 
SEES 
FIT 
TO 
IMPOSE 
UNDER 
THE 
30 
CIRCUMSTANCES OF EACH CASE OF VIOLATION.”   
31 
 
32 
SEC. 17. Implementing rules and regulations. The Department of Labor and 
33 
Employment (DOLE) and other agencies charged with carrying out the provisions of 
34 
this Act shall, within sixty (60) days after the effectivity of this Act, formulate the 
35 
necessary rules and regulations for its effective implementation. 
36 
 
37 
SEC. 18. Separability clause. Should any provision of this Act be declared invalid or 
38 
unconstitutional, the validity of the other provisions shall not be affected thereby.  
39 
 
40 
SEC. 19. Repealing clause. All laws, orders, issuances, rules and regulations or parts 
41 
thereof inconsistent with the provisions of the Act are hereby repealed, amended or 
42 
modified accordingly. 
43 
 
44 
SEC. 20. Effectivity. This Act shall take effect fifteen (15) days after its publication in 
45 
two (2) newspapers of general circulation.  
46 


10 
 
1 
Approved,  
2 
 
3 
 
4 
 
5 
 
6 
 
7