A landmark bill seeking to raise the national minimum wage benchmark is gaining strong bipartisan support as both chambers move to reconcile their respective versions before the 19th Congress adjourns on June 30.
In the House of Representatives, lawmakers approved House Bill No. 11376, also known as the Wage Hike for Minimum Wage Workers Act, on third and final reading with a vote of 171–1–0. According to Deputy Speaker and TUCP Representative Raymond Democrito Mendoza, the bill suggested a ₱200 daily wage increase for all private sector minimum wage earners nationwide.
It builds on a previous version, House Bill 7871, which proposed a ₱150 hike but was later substituted for a more aggressive figure in response to inflationary pressures and calls for wage equity.
In the Senate, Senate Bill No. 2534, which proposes a ₱100 daily wage increase, had already passed on third reading earlier in 2024. Principal sponsor Senator Joel Villanueva emphasized the urgency of the measure, especially as inflation continues to erode the real income of Filipino workers.
Villanueva also called on the House to consider adopting the Senate’s version if time constraints threaten the success of a bicameral agreement.
This historic piece of legislation comes as possibly the first legislated national minimum wage increase since 1989, when Republic Act 6727 was passed. Also known as the Wage Rationalization Act, this decentralized wage-setting through the creation of Regional Tripartite Wages and Productivity Boards (RTWPBs), resulting in varying wage levels across regions.
Today, minimum wages range from ₱341 to ₱610 depending on location, contributing to regional inequality.
Proponents argue that a national wage benchmark is long overdue. Mendoza noted that current regional rates often leave workers below the poverty line. On the other hand, business groups, particularly those representing micro, small, and medium enterprises (MSMEs), have raised concerns over the potential economic impact of a steep hike. For his part, President Ferdinand R. Marcos Jr. promised a careful review. In a statement, the palace said that the president would “carefully study the potential economic implications of the proposed PhP200 increase in the daily minimum wage for private sector workers to ensure that any decision made will strike a balance between the welfare of workers and the sustainability of businesses.”
