Senate President Pro Tempore Jinggoy Ejercito Estrada warned that employers who fail to comply with the PHP50 daily minimum wage increase in Metro Manila, effective July 18, could face a PHP25,000 fine and imprisonment of up to two years.
Estrada announced he is re-filing a bill to amend Republic Act 6727, the Wage Rationalization Act, to enhance the enforcement of wage laws. “The Constitution mandates a living wage. Yet we struggle even to enforce the minimum wage in many areas. This bill seeks to close that gap. By increasing penalties and improving enforcement, we send a strong message: wage theft will not be tolerated,” he stated in a news release.
The proposed measure aims to impose stricter penalties on violators, including fines of at least PHP100,000, moral damages of up to PHP30,000 per affected worker, and potential imprisonment of two to four years. It also suggests automatic garnishment of the violator’s assets if fines remain unpaid, holding corporate officers personally liable.
Under Wage Order No. NCR-26, approved by the Regional Tripartite Wages and Productivity Board (RTWPB)-National Capital Region on June 24, violators may face fines and jail time ranging from one to two years. The order raises the daily minimum wage to PHP695 for non-agriculture workers and PHP658 for those in agriculture and small retail and manufacturing establishments.
“Taon-taon naman halos ay may ipinatutupad ang ating mga RTWPB na pagtaas sa arawang sahod ng ating mga manggagawa. Pero hindi sapat na ianunsyo lang ang dagdag-sahod. Dapat may ngipin ang ating batas para matiyak na susundin ito ng lahat ng employer — malaki man o maliit ang kumpanya,” Estrada emphasized, highlighting the need for effective enforcement of wage increases.