Fine of P100,000 Minimum Wage Law Violators

Businessmen who violate the wage rate law are facing stiffer penalties under a bill addressing the plight of the Filipino workers.

House Bill 1889, principally authored by Rep. Ben Evardone (Lone District, Eastern Samar) provides that businessmen who refuse to implement the minimum wage law face a fine of P100,000. 

The bill seeks to amend Republic Act 6727 or the Wage Rationalization Law, which imposes only a P25,000-penalty against violators.

Under the bill, erring firms will also pay moral damages not exceeding P30,000 for each and every affected worker plus the cost of litigation, including attorney's fees.

Evardone said that of the 19,539 business establishments that were inspected recently by the Department of Labor and Employment (DOLE), about 3,660 firms are not implementing the minimum wage law. The rest, some 15,879 firms representing 81% of all the inspected establishments, were found to be complying with the minimum wage law.

Studies show there are more than 800,000 business establishments in the country, employing about 6.5 million Filipino workers.

According to Evardone, the minimum wage law could be a great help to the Filipino workers if only the companies are implementing it. 

"The salary of the workers are not enough to pay for their basic needs like food, clothing, house rental and others," Evardone said.

"In any case, strict compliance by corporations and other work establishments to the minimum wage rate should be implemented," Evardone said.

Evardone said the only way to address the problem is for Congress to enact a law enforcing a higher penalty against unscrupulous businessmen who are not following the minimum wage law.

"With this proposed legislation, the right of the Filipino workers will be protected and they will be paid according to the law," Evardone said.