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House panel approves P200 across-the-board wage hike

February 2, 2025 People's Journal 329 views

THE House Committee on Labor and Employment on Thursday approved the proposed bill providing a P200 daily wage increase across-the-board for all workers belonging to the private sector.

The proposed bill was approved after House Speaker Martin Romualdez met with the leaders of different labor groups and discussed increasing the salaries of workers.

The House Committee, led by Rizal 2nd District Rep. Juan Fidel Felipe Nograles, approved the motion of Cotabato 3rd District Rep. Ma. Alana Samantha Santos to approve the substitute bill for the proposed “P200 Daily Across-the-Board Wage Increase Act,” that is covered by House Bill nos. 514, 7568, at 7871.

If the proposed bill becomes a law, it will require all private companies, regardless of its size or industry, to implement a P200 increase in the daily wages of their employees.

It was on Tuesday evening when Speaker Romualdez, along with Deputy Speaker and TUCP Party-list Rep. Democrito Raymond Mendoza and Assistant Majority Leader and Tingog Party-list Rep. Jude Acidre, met with the labor leaders, wherein the lawmakers promised to expedite the discussion on the proposed bill on wage increase, in consideration of its effect to the country.

“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 (micro, small, and medium enterprises), are supported during this transition,” Speaker Romualdez said.

“This is a critical step toward achieving inclusive growth and addressing the immediate challenges faced by Filipino families,” said the Speaker of the House, which is composed of 307 members.

Aside from Nograles, Mendoza at Acidre, among those pushing for the bill are Reps. Ramon Jolo B. Revilla III (Cavite, 1st District), Arlene Brosas (Gabriela PL), France Castro (ACT Teachers PL), Raoul Manuel (Kabataan PL), Ron Salo (Kabayan PL), Ramon Guico Jr. (Pangasinan, 5th District), Joseph “Jojo” Lara (Cagayan, 3rd District), Robert Raymund Estrella (Abono PL), Yedda K. Romualdez (Tingog PL), Josefina Tallado (Camarines Norte, 1st District), and Jose Ma. Zubiri (Bukidnon, 3rd District).

“We will work on securing the measure’s approval as instructed by Speaker Romualdez,” Nograles said.

Mendoza, on the other hand, thanked Speaker Romualdez for spearheading the meeting.

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

Once the bill is passed into law, the employers would be required to raise the salary of their employees by P200 every day.

It is also stated in the proposed bill that employers are not allowed to deduct the wage increase from the previous adjustments except if these were clearly mentioned in collective bargaining agreements. The employers are also prohibited from reducing current benefits and allowances because of their employees’ increased daily wages.

During the hearing, Mendoza explained the historic committee approval, which he said could be the first ever legislated wage increase since 1989.

“Let’s make history together, and hopefully, after 36 years, this will finally be passed,” said Mendoza. “We are now closer than ever to passing the first-ever legislated P200 daily across-the-board wage increase under the leadership of Speaker Martin Romualdez.”

Mendoza also stressed that the Philippines is in need of just increased wages, adding that workers have long been trying to receive just compensations.

He added that in 1989, Congress increased by 40 percent the minimum wage and it did not result to inflation or loss of jobs, despite the political instability at that time.

“There were two coup d’états in 1989, economic fundamentals were so bad during the time of Cory Aquino. But there was no wave of unemployment, no collapse of businesses,” Mendoza said.

“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?” he added.

Brosas and Castro accepted the Committee decision, which they said is a big step in the long fight of workers to receive just wages.

“Para sa ating mga manggagawa, ang bawat dagdag na sahod ay mahalaga upang maitawid ang pangangailangan ng bawat pamilya,” Brosas said.

She said, “Ang pagpasa ng isang panukalang batas para sa wage increase sa committee level ay isang mahalagang hakbang pasulong. Inani ito ng bawat manggagawa na walang kapagurang ipinaglalaban ang taas-sahod. Hindi na dapat ito patagalin pa at nararapat na gawing prayoridad ng gobyerno.”

Brosas said that the salary adjustment is still not enough compared to the P1,207 family living wage that is needed in order to cover all the basic expenses of a family based on a study conducted by IBON Foundation.

Brosas also criticized the existing policies that burden workers such as the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law and the increased contribution to the Social Security System, which she said is more beneficial to the big businesses than the employees.

Castro pointed out that the proposed law gives national, legislated alternative to the regional wage board system, which has long been criticized by the labor groups because it is unable to match with the increase in the prices of goods and commodities.

“Mukhang ito ang mas magandang alternatibo—ang national, legislated wage increase sa ating mga manggagawa,” Castro added.

Castro said that it was approved because of the workers’ persistence in pushing for the bill.

“Kung hindi tayo tumigil sa paglalabi, pagra-rally, pag-dialogue kay Speaker, pag-dialogue sa sino man na pwede nating makatulong sa pagtaas ng sweldo, hindi natin ito maaabot,” she said. “Ito ang bunga ng pagpapagal at pagkilos ng ating mga manggagawa.”

Speaker Romualdez said that Congress also considered the mechanism such as the wage subsidies and exemptions for those experiencing difficulty in the MSMEs to reduce whatever negative effect the salary increase may have to the economy.

“Our MSMEs are the backbone of our economy, and they must be protected even as we address the needs of our workers,” the House Speaker said.

“Through wage subsidies and other mechanisms, we aim to ensure that no one is left behind,” he added.

If it becomes a law, the Department of Labor and Employment (DoLE) would be responsible for the implementation of the salary increase, including the conduct of inspections to make sure that companies are compliant.

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