LIGAO CITY, ALBAY — Congressman-elect Raymond Adrian E. Salceda announced this week that a key priority upon taking office in July will be the Equal Pay for Equal Work Act—a groundbreaking wage reform bill that aims to eliminate the long-standing disparity in minimum wages across regions.
“The issue of the provincial rate has been avoided for too long. I want to end it. We will implement a five-year transition period. There will be adjustments for MSMEs and for emergencies. And instead of spending on blanket dole-outs, the government will provide wage subsidies to affected businesses,” Salceda said.
Under the current system, a cashier in Quezon City is legally entitled to ₱610 per day, while a cashier performing the same job in Legazpi City earns only ₱375. According to Salceda, this wage gap is not based on productivity but on policy design.
“Under the bill, regional minimum wages will gradually adjust each year until they align with a single National Basic Wage. Businesses will remain free to pay more than the minimum, but it is wrong for the government itself to say that work in one place is worth more than in another. Wage differences should be set by the market, not by law,” Salceda explained.
Predictable Reform, Clear Enforcement
The bill mandates the creation of a National Basic Wage (NBW) that will serve as the statutory minimum wage nationwide. Each region will be required to close the gap between its current wage level and the NBW in equal increments over five years.
For example, if the NBW is set at ₱610, Region V (Bicol), which currently has a wage of ₱375, will be required to raise its minimum by ₱47 annually: ₱422, ₱469, ₱516, ₱563, and finally ₱610 in year five. Salceda described this as a predictable path for employers, with steady gains for workers, and an enforceable rule for government.
Upon full implementation, Regional Wage Boards will be abolished and their functions absorbed by a strengthened National Wages and Productivity Commission (NWPC), which will also be empowered to issue temporary regional or sectoral wage adjustments in times of disasters or major economic dislocation.
From Dole-outs to Wage Support
To ease the impact on small businesses and vulnerable sectors, the bill authorizes the conversion of certain existing national assistance programs into wage subsidy mechanisms.
“This is not about removing social assistance—it’s about making it more productive. We’ll use some of those funds to help MSMEs, exporters, and employers in lagging regions keep workers on payroll and comply with higher wage standards. It’s better to support employment than dependency,” Salceda said.
Wage subsidies may come in the form of payroll reimbursements, social security contribution .
