House panel OKs landmark P200 daily wage hike for private sector workers after strong backing from Speaker Romualdez

THE House Committee on Labor and Employment on Thursday passed a measure mandating a P200 daily across-the-board wage increase for private sector workers, moving forward with a proposal that gained momentum after Speaker Ferdinand Martin G. Romualdez met Tuesday night to discuss their call for higher wages.

The committee, chaired by Rizal 2nd District Rep. Juan Fidel Felipe Nograles, approved a motion by Cotabato 3rd District Rep. Ma. Alana Samantha Santos to pass the substitute bill for the “P200 Daily Across-the-Board Wage Increase Act,” consolidating House Bill Nos. 514, 7568, and 7871.

If enacted, the measure would require all private businesses, regardless of size or industry, to implement a P200 daily pay hike for their workers.

Speaker Romualdez—together with Deputy Speaker and TUCP Party-list Rep. Democrito Raymond Mendoza and Assistant Majority Leader and Tingog Party-list Rep. Jude Acidre—met with labor leaders Tuesday night, where he affirmed the House’s commitment to fast-tracking a wage increase measure while ensuring economic sustainability.

“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,” the leader of the 307-member House of Representatives added.

Aside from Nograles, Mendoza, and Acidre, the committee-approved bill was authored by 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.

For his part, Mendoza thanked Speaker 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.

Under the proposed law, employers must provide the additional P200 per day to their workers’ salaries upon effectivity.

The legislation prohibits employers from offsetting the increase with previously granted wage adjustments unless these were explicitly anticipated under collective bargaining agreements. Existing benefits and allowances cannot be reduced as a result of the pay hike.

During the hearing, Mendoza called the committee approval a historic moment, noting that it could be the first legislated wage hike since 1989.

“Let’s make history together, and hopefully, after 36 years, this will finally be passed,” Mendoza said. “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 emphasized that the Philippines “demands and deserves a raise,” citing the long-standing struggle of workers to obtain fair wages.

He recalled that in 1989, Congress raised the minimum wage by 40% without triggering massive inflation or unemployment, despite political instability at the 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 welcomed the committee’s decision, calling it a “major step forward” in workers’ long-standing fight for higher wages.

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

She continued, “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 reiterated that the wage hike remains insufficient compared to the P1,207 family living wage estimated by IBON Foundation as necessary to cover basic household expenses.

She also criticized existing policies that burden workers, citing the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law and increased Social Security System contributions, which she said favor big businesses over labor.

Castro noted that the bill offers a national, legislated alternative to the regional wage board system, which labor groups have long criticized for failing to keep up with inflation.

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

Castro credited the approval to the persistent lobbying and mobilization efforts of workers’ groups.

“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 the House is considering mechanisms such as wage subsidies and exemptions for struggling MSMEs to mitigate any negative economic impacts of the wage hike.

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

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

The Department of Labor and Employment (DoLE) will be tasked with enforcing the wage increase, conducting inspections to ensure compliance.

Employers who violate the law face fines of P50,000 to P100,000 or imprisonment of up to four years.

Violators will also be required to pay double the amount of unpaid benefits owed to their workers.

The bill will now move to the House plenary for further deliberation.