Wage Increase for Public and Private Workers

Minimum wage rates for private sector workers, whether agricultural or non-agricultural, are increased by ten pesos (P10.00) per day.
Non-agricultural workers outside Metro Manila shall receive an eleven pesos (P11.00) per day increase.
Workers already earning above the minimum wage up to one hundred pesos (P100.00) will receive a P10.00 daily increase.
Domestic helpers and those employed in personal service are excluded from this Act.

Disputes arising from wage distortions caused by the minimum wage increase must first be settled voluntarily between employers and employees.
If unresolved, disputes are subject to compulsory arbitration by the National Labor Relations Commission (NLRC).
The NLRC must conduct continuous hearings and decide within 30 days from submission.
Disputes should not delay the implementation of wage increases.
"Wage distortion" refers to elimination or severe contraction of wage differences between employee groups based on skills, length of service, or logical wage structure.

Workers paid on piecework, takay, pakyaw, or task basis must receive at least the applicable statutory minimum wage for eight hours of work or proportionately for fewer hours.

These workers are entitled to at least 75% of the adjusted minimum wage.
A handicapped worker is defined as one whose efficiency or work quality is impaired due to disability related to the job performed.
Existing learnership and apprenticeship agreements are modified automatically to reflect the wage increase.

Employers of construction workers, security guards, janitors, and similar workers shall bear the wage increase cost.
The principal or client is subsidiarily liable, except in the construction of family homes valued at P200,000.00 or less.

The Act shall not reduce any existing allowances or benefits provided by law, decree, executive order, contract, or agreement.

Employers in retail regularly employing not more than ten workers may apply for exemption from compliance.
Regional Department of Labor and Employment Offices will defer actions on non-compliance complaints pending exemption application resolution.
If exemption is denied, employees are entitled to back wages plus 1% per month interest from the law’s effectivity.

The Secretary of Labor and Employment shall promulgate rules and regulations to enforce the Act.

Violators will face fines up to P25,000.00 and/or imprisonment from one to two years.
Convicted persons are ineligible for probation benefits.
If a corporation or entity violates the law, responsible officers will be subject to imprisonment.

The wage increase for public employees will be funded from the Compensation and Organizational Adjustment Fund, Contingent Fund, other savings under the General Appropriations Act, or unappropriated National Treasury funds.
Shortfalls shall be charged against personal services savings of the National Government.
The increase shall be sustained in future annual appropriations.

Laws, orders, issuances, and regulations inconsistent with this Act are amended or repealed.
If any provision is held invalid or unconstitutional, the rest of the Act remains effective.

The Act takes effect the day after its publication in two national newspapers of general circulation.