MANILA – On January 30, 2025, the House Committee on Labor and Employment approved a substitute bill mandating a P200 daily wage increase for all private sector workers, regardless of business size or industry.
This marks a significant step toward a legislated wage hike, which has not been implemented in over three decades.
The bill consolidates House Bills No. 514, 7568, and 7871 and prohibits employers from offsetting the increase with prior wage adjustments, unless explicitly stated in collective bargaining agreements. It also ensures that existing benefits and allowances cannot be reduced to cover the wage hike.
The Department of Labor and Employment (DOLE) will oversee compliance through inspections, with penalties ranging from P50,000 to P100,000 or imprisonment of up to four years for violators.
House Speaker Martin Romualdez has expressed strong support for the measure, which gained momentum after consultations with labor leaders. He emphasized the importance of balancing workers’ needs with the support of businesses, particularly micro, small, and medium enterprises (MSMEs), which may benefit from wage subsidies and exemptions.
“The House is committed to moving forward with this wage increase proposal to help workers while fostering economic growth through increased consumer spending,” Romualdez stated, highlighting the potential long-term benefits of the increase.
TUCP Party-list Rep. Democrito Raymond Mendoza called the approval a historic moment, noting that it could be the first wage hike in over 36 years. He thanked Speaker Romualdez for his leadership in advancing the measure.
Senate President Francis Escudero also voiced support for the initiative, expressing a willingness to collaborate with the House to ensure the measure’s passage before the end of the legislative session.
This wage increase proposal now looks set for further discussion and approval in the Senate, with both chambers aiming for swift coordination.
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