FINE, IMPRISONMENT AWAIT EMPLOYERS VIOLATING WAGE HIKE MANDATES – JINGGOY

A FINE of ₱25,000 and imprisonment of one to two years await those who refuse to comply with the government-mandated ₱50 daily salary increase for minimum wage earners in Metro Manila starting July 18.

Senate President Pro Tempore Jinggoy Ejercito Estrada issued this warning as he also pushes for a measure that would impose stiffer penalties on employers who violate prescribed wage increases and adjustments.

“Our workers deserve not just a decent wage, but the assurance that it will be implemented and protected,” said Estrada, a staunch labor advocate, citing the penal provision in Wage Order No. NCR-26, which grants a ₱50 increase in the daily minimum wage in the National Capital Region (NCR).

Under the said wage order, which was approved last June 24 by the NCR Regional Tripartite Wages and Productivity Board (RTWPB), the minimum wage will be P695 for the non-agricultural sector, and P658 for the agriculture sector, service and retail establishments employing 15 or fewer workers, and manufacturing establishments regularly employing less than 10 workers.

“Taun-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 stressed.

The veteran lawmaker emphasized the need to fully protect workers’ rights and uphold the spirit of social justice enshrined in the Constitution.

Estrada is set to re-file his bill seeking to amend Republic Act No. 6727 or the “Wage Rationalization Act,” to increase fines and introduce stricter enforcement mechanisms against non-compliant individuals, corporations, and other entities.

Under Estrada’s proposed measure, violators of mandated wage increases face a fine of not less than P100,000 plus moral damages of up to P30,000 for each affected worker, in addition to litigation costs and attorney’s fees. They may also be sentenced to imprisonment of two to four years, or both, at the court’s discretion.

The bill also introduces a stronger enforcement framework, including automatic garnishment of financial assets and properties of violators in case of non-payment of fines. Should the violator be a corporation or partnership, responsible officers such as the president, CEO, or managing director will be held personally liable.

Estrada noted that despite existing laws, non-compliance with wage orders remains a persistent problem, with many workers — especially those in the informal sector and those hired through contractors — being denied the pay they rightfully deserve.

“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 said.

Estrada expressed confidence that the proposed measure will get bipartisan support in the Senate, noting that it will advance workers’ rights and promote fairness in the workplace.

“This is not just about penalties; it’s about justice and dignity for the Filipino worker,” he emphasized.