Manila: The House Committee on Labor and Employment on Thursday approved a substitute bill mandating a PHP200 daily across-the-board wage increase for private sector workers. The panel, chaired by Rizal 2nd District Rep. Juan Fidel Nograles, gave the green light to the substitute bill consolidating House Bills No. 514, 7568, and 7871.
According to Philippines News Agency, the measure requires all private businesses, regardless of size and industry, to implement a PHP200 daily pay hike upon enactment. Employers are prohibited from offsetting the increase with previous wage adjustments unless explicitly anticipated under collective bargaining agreements. Additionally, existing benefits and allowances cannot be reduced to accommodate the pay raise. The Department of Labor and Employment (DOLE) will be responsible for conducting inspections to ensure compliance. Employers violating the law face fines ranging from PHP50,000 to PHP100,000 or imprisonment of up to four years.
The proposal gained traction at the House after Speaker Martin Romualdez met with labor leaders to solicit their input in support of their plea for a legislated wage hike. Romualdez reaffirmed the chamber’s commitment to speed up deliberations on a proposed legislated wage hike. He emphasized the importance of crafting a wage increase measure that meets workers’ needs while ensuring that businesses, particularly MSMEs, are supported during this transition. Romualdez highlighted that the last legislated wage increase was enacted over three decades ago under the Wage Rationalization Act of 1989, expressing optimism about achieving a similar outcome with careful planning and collaboration with all sectors.
The House Speaker also pointed to the broader economic benefits of higher wages, citing increased consumer spending as a driver of growth. He noted that higher wages mean workers have more disposable income to spend on goods and services, increasing demand across various sectors. Romualdez stated that a well-designed wage hike is not just an immediate solution to help workers cope with inflation, but an investment in the collective future. To mitigate the impact on MSMEs, provisions such as wage subsidies and exemptions are being considered.
TUCP Party-list Rep. Democrito Raymond Mendoza called the committee approval a historic moment, noting that it could be the first legislated wage hike in over three decades. He referenced Congress’s previous wage increase, which did not lead to inflation spikes or widespread job losses. Mendoza questioned the policy of providing “poverty wages” that do not offer a decent life for families and expressed gratitude for Romualdez’s leadership in advancing the measure.
With the development, Senate President Francis Escudero expressed his anticipation of close collaboration between both chambers of Congress to push the initiative forward. He welcomed the House’s openness to passing the Senate-initiated measure and expressed eagerness to work with them despite having only nine session days left. To ensure coordination, Escudero mentioned instructing the Senate’s committee secretaries to monitor the House hearings and keep senators updated on the developments.