A proposed measure in the Senate aims to strengthen protection for “pakyawan” or piece-rate workers by ensuring they receive fair wages, proper monitoring, and stronger safeguards against labor abuse.
Senate Bill No. 82, also known as the “Anti-Abuse of Pakyawan Workers Act,” seeks to address long-standing gaps in the country’s output-based wage system, where many workers reportedly earn below the legal minimum wage despite completing full workdays.
Under the proposed measure, employers would be required to guarantee that piece-rate workers receive compensation no lower than the prevailing regional minimum wage set under Republic Act No. 6727 or the Wage Rationalization Act.
The bill, filed by Senate Minority Leader Alan Peter Cayetano, seeks to standardize how output-based wages are computed by requiring a Time and Motion Study (TMS) before employers can implement or revise any piece-rate pay scheme.
The study would determine the reasonable amount of work a laborer can complete within a standard workday and would serve as the basis for official Piece-Rate Orders to be issued by Regional Tripartite Wages and Productivity Boards.
Lawmakers backing the proposal said the measure is intended to protect workers from exploitative arrangements while promoting fairness and dignity in the labor sector.
The bill further strengthens monitoring mechanisms by requiring at least two random workplace inspections annually, with worker representatives mandated to be present during inspections to ensure transparency.
It also introduces graduated penalties against employers found violating wage rules, including underpayment, nonpayment of benefits, and non-compliance with approved wage orders.
Supporters of the measure said the proposal balances stricter labor enforcement with due process protections for employers and labor agencies.
The bill emphasizes that improving wages and working conditions remains essential to raising the quality of life for Filipino workers, particularly those in vulnerable and informal employment arrangements.
If enacted, the measure is expected to benefit thousands of workers in industries where output-based or “pakyawan” compensation schemes are commonly practiced.