Manila: Employers in Metro Manila who fail to adhere to the new PHP50 daily minimum wage increase, effective from July 18, will face severe consequences, including a PHP25,000 fine and up to two years of imprisonment, Senate President Pro Tempore Jinggoy Ejercito Estrada announced on Thursday.

According to Philippines News Agency, Estrada plans to re-file a bill to amend Republic Act 6727, also known as the Wage Rationalization Act, with the goal of reinforcing the implementation of wage laws. Estrada emphasized the constitutional mandate for a living wage and the need to enforce the minimum wage effectively. He stated that the proposed legislation aims to address this enforcement gap by increasing penalties and enhancing enforcement measures. Estrada's initiative is intended to convey a strong message against wage theft.

The proposed bill includes harsher penalties for violators, such as fines of at least PHP100,000, moral damages of up to PHP30,000 per affected worker, and possible imprisonment ranging from two to four years. It also suggests the automatic garnishment of a violator's assets if fines are not settled. For corporate entities, the bill would hold officers like the president, CEO, or managing director personally accountable.

Wage Order No. NCR-26 stipulates penalties for non-compliance, including fines and imprisonment of one to two years. Approved by the Regional Tripartite Wages and Productivity Board (RTWPB)-National Capital Region on June 24, the order raises the daily minimum wage to PHP695 for non-agricultural workers and PHP658 for those in the agricultural sector, as well as in small retail and manufacturing establishments.

Estrada highlighted the need for legislative measures to ensure compliance with wage hikes, pointing out that annual increases in workers' daily wages are often announced by RTWPBs but lack effective enforcement mechanisms. He stressed the importance of laws with "teeth" to ensure adherence by all employers, regardless of company size.