MANILA — Employers in Metro Manila who fail to comply with the P50 daily minimum wage hike effective July 18 may face a fine of P25,000 and imprisonment of one to two years, a lawmaker warned.

Senate President Pro Tempore Jinggoy Estrada issued the reminder as he also pushed for stiffer penalties under a bill seeking to amend Republic Act No. 6727 or the “Wage Rationalization Act,” aimed at strengthening enforcement mechanisms and increasing penalties for violators.

“Our workers deserve not just a decent wage, but the assurance that it will be implemented and protected,” said Estrada, citing the penal provision in Wage Order No. NCR-26.

The wage order, approved on June 24 by the NCR Regional Tripartite Wages and Productivity Board (RTWPB), increases the minimum daily wage to P695 for the non-agricultural sector and P658 for workers in the agriculture sector, service and retail establishments with 15 or fewer employees, and manufacturing firms regularly employing fewer than 10 workers.

“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 said.

Under his proposed measure, employers who violate mandated wage increases may face a fine of not less than P100,000, plus moral damages of up to P30,000 for each affected worker, along with litigation costs and attorney’s fees. They could also face two to four years of imprisonment, or both, at the court’s discretion.

The bill also proposes automatic garnishment of financial assets and properties of violators who fail to pay fines. For corporations or partnerships, responsible officers such as the president, CEO, or managing director would be held personally liable.

Estrada emphasized that wage violations persist despite existing laws, particularly affecting informal workers and those hired through labor contractors.

“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.

He expressed confidence that the measure would gain bipartisan support in the Senate, saying it upholds workers’ rights and promotes fairness in the workplace.

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