A bill seeking to grant a 30 percent increase in daily minimum wage to private sector employees required to report to work during strong typhoons and other calamities is being pushed in the Senate.
Senate Bill No. 520, or the proposed Calamity Work Compensation Act, was filed by Sen. Loren Legarda, who said it is crucial to mandate additional compensation for employees who continue working during declared calamities and emergency situations.
Legarda noted that the Philippines’ location along the Pacific Ring of Fire makes it highly vulnerable to natural hazards, with 60 percent of the country’s land area and 74 percent of its population exposed to floods, cyclones, droughts, earthquakes, tsunamis, landslides, and other disasters.
The senator also highlighted that the Philippines topped the World Risk Index (WRI) for the third consecutive year in 2024, underscoring the country’s extreme susceptibility to natural hazards and global risks.
Despite these challenges, Legarda said certain sectors, such as transportation, food supply, healthcare, media, and utilities, remain operational, ensuring the continuity of essential services during calamities.
“Their operations are not merely business endeavors but vital public functions that uphold the nation’s stability,” she added.
The proposed law seeks to provide fair compensation for employees sustaining essential services during calamities. Under the bill, private sector employers must grant an additional 30 percent of the daily wage to workers required to report for duty during declared calamities or emergency alerts.
Legarda emphasized that the rate aligns with existing labor standards for overtime, rest day work, and special holidays under the Labor Code of the Philippines (Presidential Decree No. 442). She explained that the additional pay covers extra expenses such as transportation, food, early departures, safety risks, and inflationary pressures incurred during calamities.
“This compensation is not hazard pay nor a substitute for legally mandated benefits,” Legarda clarified. “It serves as reimbursement for additional expenses and hardships employees incur, ensuring they are not financially disadvantaged for their indispensable service.”
The bill aims to allow employees to perform their duties during extreme conditions without the added stress of financial strain, while prioritizing their safety and well-being.
Under the measure, the Department of Labor and Employment (DOLE) will issue guidelines on the correct calculation of calamity pay, considering the type of work, level of risk, and severity of the calamity. Employers who fail to comply may face fines or other penalties.
