MANILA, Philippines – The House of Representatives has approved on its third and final reading a bill mandating a P200 per day increase for minimum wage earners in the private sector. House Bill (HB) No. 11376, or the “Wage Hike For Minimum Wage Workers Act,” received overwhelming support during Tuesday’s plenary session, with 171 lawmakers voting in favor, one against, and no abstentions.

Under the approved measure, the daily rate of all minimum wage workers in the private sector, regardless of employment status, including contractual and sub-contractual arrangements in both agricultural and non-agricultural sectors, will be increased by P200. Importantly, the bill clarifies that Regional Tripartite Wages and Productivity Boards can still grant additional wage increases even after the enactment of HB No. 11376.

The legislation also includes provisions for small enterprises that may struggle with compliance. They can avail of incentives from the Department of Labor and Employment (DOLE) through implementing rules and regulations. Exemptions from the wage hike may be granted to retail or service establishments regularly employing not more than ten workers, and to establishments adversely affected by natural calamities or human-induced disasters.

To safeguard existing benefits, the bill explicitly states that the wage hike must not lead to a reduction of any current allowances and benefits. Non-compliance with the act will incur penalties ranging from P100,000 to P500,000, along with imprisonment of responsible officers for two to four years, or both, at the discretion of the court.

HB No. 11376 was initially approved on second reading on February 3, 2025, just before Congress’s election break. A key amendment in the final version (Committee Report No. 1384) clarified that the P200 increase would apply only to minimum wage earners, unlike earlier proposals for an across-the-board increase for all private sector workers.

This House version proposes a higher increase than Senate Bill No. 2534, which was approved in February 2024, advocating for a P100-daily minimum wage increase. HB No. 11376 is a substitution of previous proposals, including TUCP party-list Rep. Raymond Mendoza’s HB No. 7871 for a P150 across-the-board hike, and the Makabayan bloc’s HB No. 7568 for a P750 increase.