Legarda pushes Living Wage Act for Filipino workers

Senator Loren Legarda pressed for the urgent passage of the Living Wage Act, a measure she said would update the country’s wage-setting framework that has remained unchanged for more than three decades.

“For 36 years, our wage standards have barely moved while the cost of living has surged ahead. We cannot solve the crises of 2025 with solutions from 1989,” Legarda said.

Filed as Senate Bill No. 163, the proposal amends Article 124 of the Labor Code to require that regional minimum wages align with the living wage—defined as the income needed for a worker and their family to afford adequate food, shelter, healthcare, education, and a decent standard of living.

The definition is consistent with the International Labor Organization’s (ILO) global standard on living wage, which has been gaining traction in labor policy reforms worldwide.

“We are failing our workers when the law allows a minimum wage that isn’t enough to live on. It is our constitutional duty to bridge the gap between wage reality and wage justice,” Legarda said.

Republic Act No. 6727, or the Wage Rationalization Act, already recognizes the concept of a living wage in wage-setting, but implementation has been weak and largely left to regional wage boards.

Legarda’s bill strengthens this mandate by making the living wage the baseline for determining regional minimum wages, with adjustments to be guided by transparent, data-driven, and consultative processes.

“Workers are not just labor inputs. Our laws must provide dignity, not desperation, to those who keep our economy alive,” Legarda said.

The renewed push comes amid inflationary pressures and debates on wage increases across the regions, with labor groups insisting that existing minimum wages fall short of covering basic household needs.

Economic think tanks estimate that a living wage in Metro Manila would need to exceed PHP 1,100 daily to meet a family’s needs, while the current minimum wage stands at PHP 645.

Legislators are expected to face tough debates on balancing wage adjustments with business competitiveness, especially for small and medium enterprises.

Still, supporters argue that adopting a living wage framework would reduce poverty and improve productivity by ensuring Filipino workers can live with dignity.