P200 daily minimum wage hike hurdles House panel

By Filane Mikee Cervantes, Philippine News Agency

During the hearing, the panel, chaired by Rizal 2nd District Rep. Juan Fidel Nograles, approved the substitute bill to House Bills No. 514, 7568, and 7871. (Photo: House of Representatives of the Philippines/Facebook)

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.

During the hearing, the panel, chaired by Rizal 2nd District Rep. Juan Fidel Nograles, approved the substitute bill to House Bills No. 514, 7568, and 7871.

The measure requires all private businesses, regardless of size and industry, to implement a PHP200 daily pay hike upon enactment.

It prohibits employers from offsetting the increase with previous wage adjustments unless explicitly anticipated under collective bargaining agreements.

Existing benefits and allowances cannot be reduced to accommodate the pay raise.

The Department of Labor and Employment (DOLE) will be tasked with 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.

“The House of the People is working tirelessly to craft a wage increase measure that meets the needs of our workers while ensuring that businesses, particularly MSMEs, are supported during this transition,” Romualdez said.

Romualdez noted that the last legislated wage increase was enacted more than three decades ago under the Wage Rationalization Act of 1989.

“If we were able to do this in the past, there is no reason why we cannot do it now, especially with careful planning and collaboration with all sectors,” Romualdez said.

The House Speaker also pointed to the broader economic benefits of higher wages, citing increased consumer spending as a driver of growth.

“Higher wages mean workers have more disposable income to spend on goods and services, increasing demand across various sectors,” Romualdez said. “A well-designed wage hike is not just an immediate solution to help workers cope with inflation, it is an investment in our collective future.”

To mitigate the impact on MSMEs, provisions such as wage subsidies and exemptions are being considered.

Historic approval

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 cited Congress’s previous wage increase, which did not lead to inflation spikes or widespread job losses.

“For 36 years under the Regional Minimum Wage Board, almost all regional wages have remained below the poverty line. Is it our policy to give poverty wages that cannot provide a decent life for our families?” Mendoza said.

Mendoza thanked Romualdez for his leadership in advancing the measure.

“We are very happy with Speaker Romualdez’s commitment to ensuring the measure’s approval,” Mendoza said.

Senate-House collaboration

With the development, Senate President Francis Escudero said he is looking forward to a close collaboration between both chambers of Congress to push the initiative forward.

“Although we have only nine session days left, I welcome the openness of the House, at this time, to passing this Senate-initiated measure,” Escudero said in a Viber message to reporters.

“I look forward to working with them on this.”

To ensure coordination, Escudero said he would instruct the Senate’s committee secretaries to monitor the House hearings and keep senators updated on the developments. (With a report from Wilnard Bacelonia/PNA)