House OKs P200 minimum wage hike on final reading
The House of Representatives’ version of a legislated wage hike bill, which increases minimum wage earners’ salaries by P200 per day, has been approved on third and final reading. — 好色先生TV FILES
MANILA, Philippines — The House of Representatives’ version of a legislated wage hike bill, which increases minimum wage earners’ salaries by P200 per day, has been approved on third and final reading.
During the plenary session on Tuesday, House Bill (HB) No. 11376 or the proposed Wage Hike For Minimum Wage Workers Act was approved after 171 lawmakers voted in the affirmative, one in the negative, with zero abstentions.
According to the final version of the bill, the Regional Tripartite Wages and Productivity Boards can still implement wage increases even if HB No. 11376 is enacted.
“Upon the effectivity of this Act, the daily rate of all minimum wage workers in the private sector, regardless of employment status, including those in contractual and sub-contractual arrangements, whether agricultural or nonagricultural, shall be increased by two hundred pesos (P200) per day,” Section 3 of the proposed measure said.
“Nothing in this Act shall prevent the respective Regional Tripartite Wages and Productivity Boards from granting additional increases to the workers and employees, as may be determined in accordance with their mandate under Republic Act No. 6727, otherwise known as the ‘Wage Rationalization Act,’ as amended,” it added.
The bill also states that small enterprises which may be affected by the wage hikes can avail of incentives from the Department of Labor and Employment.
Some industries, the bill noted, may be exempted from implementing the wage hike once it turns into law.
“To assist in their compliance with the wage increase, small enterprises may avail of incentives from the Department of Labor and Employment (DOLE), subject to the implementing rules and regulations of this,” the bill read.
“[…] The following establishments may apply for exemption from compliance with the minimum wage increase as provided by this Act: (a) retail or service establishments regularly employing not more than ten (10) workers; and (b) establishments adversely affected by natural calamities or human-induced disasters,” it added.
Furthermore, the bill also warned that the wage hike must not lead to the reduction of existing allowances and benefits, adding that not adhering to the regulations will result in a penalty ranging from P100,000 to P500,000, and imprisonment of responsible officers.
“Nothing in this Act shall be construed to reduce any existing allowance and benefit of any form under existing laws, decrees, issuances, executive orders, and any contract or agreement between workers and employers,” the bill stated.
“Any person, corporation, trust, firm, partnership, association, or entity violating any provision of this Act shall be punished by a fine of not less than One hundred thousand pesos (P100,000.00) nor more than Five hundred thousand pesos (P500,000.00) or imprisonment of not less than two years nor more than four years, or both at the discretion of the Court,” it added.
HB No. 11376 was approved by the House on second reading last February 3 — two days before Congress adjourned its session for the election season break.
Before the bill was approved, no committee or individual amendments were made but Assistant Majority Leader and Leyte 3rd District Rep. Anna Victoria Veloso-Tuazon said that they will be placing a substitute bill to HB No. 11376, under Committee Report No. 1384.
Initially, it was unclear why there was a substitution of the bill, but copies of the substitute measure under Committee Report No. 1384 provided by Gabriela party-list Rep. Arlene Brosas showed that the key difference would be that the wage hike would apply to minimum wage earners only.
READ: House OKs P200 minimum wage hike bill on 2nd reading
Previously, the bill called for a P200 across-the-board increase to wages — which would have resulted in salary increases for all private sector workers, regardless of their salary grades.
The proposed P200 per day salary increase for minimum wage earners is higher than what the Senate has approved. Last February 2024, Senate Bill No. 2534, which proposes a P100-daily minimum wage increase for private sector workers was approved on third and final reading.
READ: Senate approves P100 daily wage hike bill
HB No. 11376 is a substitution to HB No. 7871 filed by TUCP party-list and Deputy Speaker Raymond Mendoza, which sought a P150 across-the-board wage hike for all workers in the private sector. The Makabayan bloc on the other hand filed HB No. 7568, which seeks a P750 wage increase. /das
