Senator Cayetano supports bill ensuring minimum wage for piece-rate workers

Senate Minority Leader Alan Peter Cayetano has thrown his support behind a proposed measure seeking stronger wage protections for piece-rate or “pakyawan” workers, amid concerns that many still earn below the legal minimum wage despite completing full workdays.

Cayetano is among the co-authors of Senate Bill No. 82, also known as the “Anti-Abuse of Pakyawan Workers Act,” principally authored by Raffy Tulfo. The proposal seeks to tighten regulations governing output-based compensation systems and ensure fairer treatment of workers paid per task or quota completed.

“As part of honoring God and building communities through good governance, the State must promote human dignity in the labor sector and create a system where all persons are given the chance to thrive and rise,” he said.

“The hope of building a just and humane society will begin once we look beyond simply providing a minimum wage and start aiming for a living wage for all Filipinos,” Cayetano added.

Under the bill, employers would be required to guarantee that pakyawan workers receive compensation that is not lower than the prevailing minimum wage set under Republic Act No. 6727, even under piece-rate arrangements.

The measure also proposes stricter standards before companies can introduce or revise piece-rate systems. Employers, workers, or unions would need to apply with the Regional Tripartite Wages and Productivity Board, while a mandatory Time and Motion Study would determine the appropriate output-based pay structure through official Piece-Rate Orders.

To strengthen compliance, the bill calls for random inspections at least twice yearly, with worker representatives required to be present during inspections to help ensure workplace conditions are properly monitored.

The proposal further outlines graduated administrative penalties for violations, including underpayment of wages, nonpayment of mandatory benefits, and failure to comply with approved wage orders.

Cayetano said the measure complements his broader labor reform initiatives, including a proposal to establish a labor commission aimed at speeding up the resolution of worker-related concerns.

"It’s not enough that we raise people’s pay by a small fraction. If we want real change, give people a more reasonable standard of living. Kailangan ngayon ng matapang na solusyon at mabilis na aksyon para sa bawat manggagawang Pilipino,” he said.