MALACAÑANG
M a n i l aPRESIDENTIAL DECREE No. 1614
MINIMUM WAGES AND EMERGENCY ALLOWANCES
WHEREAS, the OPEC oil price increase and the disruption of oil production in Iron have made increases in the prices of various commodities inevitable, including items covered by the government socialized pricing program;
WHEREAS, the fixed-income groups in our society, especially the great mass of wage earners, are incapable of adjusting themselves to the new realities and, unless helped initially, they may suffer serious difficulties;
WHEREAS, it has been the policy of the state in times of crisis like this to initiate the process of adjustment and insure the peaceful and orderly establishment of a new equilibrium in prices, incomes and wages;
WHEREAS, representatives of Labor, management and government, in a National Tripartite Conference at the Development Academy of the Philippines, Tagaytay City, on March 7 and 8, 1979 have reached, after intensive and exhaustive consultations, a consensus on viable levels of wages and compensation.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President and Prime Minister,...
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Presidential Decrees
Minimum Wages And Emergency Allowances
Presidential Decree No. 1614
Summary of Presidential Decree No. 1614 and its Implementing Rules:
Minimum Wages
- Non-agricultural workers in Metro Manila: ₱13.00 per day (Section 3(a)(1))
- Non-agricultural workers outside Metro Manila: ₱12.00 per day (Section 3(a)(2))
- Plantation agricultural workers: ₱10.00 per day (Section 3(b)(1))
- Non-plantation agricultural workers: ₱9.00 per day (Section 3(b)(2))
- Cottage and handicraft industry workers: ₱10.00 - ₱12.00 per day (Section 3(c))
- Retail or service establishments with ≤10 workers: ₱10.00 - ₱11.00 per day (Section 3(d))
- Labor-intensive export industries: ₱12.00 - ₱13.00 per day (Section 3(e))
- Sugar industry workers: ₱7.00 - ₱11.00 per day (Section 3(f))
- Workers paid by results: Rates to be fixed by the Ministry of Labor (Section 3(g))
- Learners and apprentices: At least 75% of the applicable minimum wage (Section 4)
Emergency Cost-of-Living Allowance
- Non-agricultural workers earning ≤₱1,000/month: ₱60.00 per month (Section 3(1))
- Plantation agricultural workers earning ≤₱1,000/month: ₱40.00 per month (Section 3(2))
- Non-plantation agricultural workers earning ≤₱1,000/month: ₱20.00 per month (Section 3(3))
Coverage and Exclusions
- Covers all employees in private and public sectors, except: (Section 1)
- Household or domestic helpers, family drivers, and homeworkers
- Employers of household or domestic helpers, family drivers, and homeworkers
- Retail and service establishments with ≤10 workers
- Labor-intensive and export-oriented cottage and handicrafts employers
- Labor-intensive export industries (garments, shoes, leather, furniture, electronics) until June 1, 1979 (Section 1(e))
- New labor-intensive export enterprises outside Metro Manila for the first 2 years (Section 1(f))
- Employers in the sugar industry until the composite price of sugar reaches $0.13 per pound (Section 1(g))
- Private educational institutions until the next school year or increased fees are charged (Section 1(h))
- Non-profit institutions and organizations dependent on donations for ≥75% of operations (Section 1(i))
- Employers that have granted wage increases exceeding the law's requirements since December 1, 1978 (Section 1(j))
- Employers already paying emergency living allowance or equivalents (Section 1(k))
Definitions (Section 1)
- "Metropolitan Manila" is defined as the cities of Manila, Quezon, Pasay, Caloocan, and the municipalities of Makati, Mandaluyong, San Juan, Las Piñas, Malabon, Navotas, Pasig, Pateros, Parañaque, Marikina, Muntinlupa, Taguig, and Valenzuela.
- "Retail Establishment" is defined as one open to the general public for the sale of goods commonly bought by end-users for personal or household use.
- "Service Establishment" is defined as one engaged predominantly in the sale of services.
- "Agriculture" is defined and includes farming, cultivation, dairying, livestock raising, and related activities, but excludes manufacturing or processing of farm products.
- "Plantation Agricultural Workers" are those employed in plantations or agricultural enterprises with an area of more than 24 hectares or employing at least 20 workers.
- "Labor-intensive Export Industries" are enterprises engaged in manufacturing products with at least 30% for export and employing labor at a ratio of one worker for every ₱10,000 or less of fixed assets.
Other Provisions
- The minimum wage rates are for work of not more than 8 hours a day (Section 5)
- The minimum wage rates are exclusive of other benefits enjoyed by employees (Section 6)
- 50% of credited tips and service charges may be included in computing the minimum wage in the hotel and restaurant industry (Section 7)
- Transfer of personnel shall not be a valid ground for reducing the minimum wage (Section 8)
- Formulas are provided for determining the equivalent monthly rates (Section 10)
- Construction and service contractors are covered, and compliance is their joint liability with the principal (Section 1, Chapter IV)
- The decree shall not be a ground for renegotiating existing collective bargaining agreements, except for correcting wage distortions (Section 3, Chapter IV)
- The decree shall not withdraw or reduce existing allowances, bonuses, and other benefits (Section 4, Chapter IV)
- The decree and rules shall be enforced in accordance with the Labor Code and other applicable laws, with penalties for violations (Section 3, Chapter V)
Minimum Wages
- Non-agricultural workers in Metro Manila: ₱13.00 per day (Section 3(a)(1))
- Non-agricultural workers outside Metro Manila: ₱12.00 per day (Section 3(a)(2))
- Plantation agricultural workers: ₱10.00 per day (Section 3(b)(1))
- Non-plantation agricultural workers: ₱9.00 per day (Section 3(b)(2))
- Cottage and handicraft industry workers: ₱10.00 - ₱12.00 per day (Section 3(c))
- Retail or service establishments with ≤10 workers: ₱10.00 - ₱11.00 per day (Section 3(d))
- Labor-intensive export industries: ₱12.00 - ₱13.00 per day (Section 3(e))
- Sugar industry workers: ₱7.00 - ₱11.00 per day (Section 3(f))
- Workers paid by results: Rates to be fixed by the Ministry of Labor (Section 3(g))
- Learners and apprentices: At least 75% of the applicable minimum wage (Section 4)
Emergency Cost-of-Living Allowance
- Non-agricultural workers earning ≤₱1,000/month: ₱60.00 per month (Section 3(1))
- Plantation agricultural workers earning ≤₱1,000/month: ₱40.00 per month (Section 3(2))
- Non-plantation agricultural workers earning ≤₱1,000/month: ₱20.00 per month (Section 3(3))
Coverage and Exclusions
- Covers all employees in private and public sectors, except: (Section 1)
- Household or domestic helpers, family drivers, and homeworkers
- Employers of household or domestic helpers, family drivers, and homeworkers
- Retail and service establishments with ≤10 workers
- Labor-intensive and export-oriented cottage and handicrafts employers
- Labor-intensive export industries (garments, shoes, leather, furniture, electronics) until June 1, 1979 (Section 1(e))
- New labor-intensive export enterprises outside Metro Manila for the first 2 years (Section 1(f))
- Employers in the sugar industry until the composite price of sugar reaches $0.13 per pound (Section 1(g))
- Private educational institutions until the next school year or increased fees are charged (Section 1(h))
- Non-profit institutions and organizations dependent on donations for ≥75% of operations (Section 1(i))
- Employers that have granted wage increases exceeding the law's requirements since December 1, 1978 (Section 1(j))
- Employers already paying emergency living allowance or equivalents (Section 1(k))
Definitions (Section 1)
- "Metropolitan Manila" is defined as the cities of Manila, Quezon, Pasay, Caloocan, and the municipalities of Makati, Mandaluyong, San Juan, Las Piñas, Malabon, Navotas, Pasig, Pateros, Parañaque, Marikina, Muntinlupa, Taguig, and Valenzuela.
- "Retail Establishment" is defined as one open to the general public for the sale of goods commonly bought by end-users for personal or household use.
- "Service Establishment" is defined as one engaged predominantly in the sale of services.
- "Agriculture" is defined and includes farming, cultivation, dairying, livestock raising, and related activities, but excludes manufacturing or processing of farm products.
- "Plantation Agricultural Workers" are those employed in plantations or agricultural enterprises with an area of more than 24 hectares or employing at least 20 workers.
- "Labor-intensive Export Industries" are enterprises engaged in manufacturing products with at least 30% for export and employing labor at a ratio of one worker for every ₱10,000 or less of fixed assets.
Other Provisions
- The minimum wage rates are for work of not more than 8 hours a day (Section 5)
- The minimum wage rates are exclusive of other benefits enjoyed by employees (Section 6)
- 50% of credited tips and service charges may be included in computing the minimum wage in the hotel and restaurant industry (Section 7)
- Transfer of personnel shall not be a valid ground for reducing the minimum wage (Section 8)
- Formulas are provided for determining the equivalent monthly rates (Section 10)
- Construction and service contractors are covered, and compliance is their joint liability with the principal (Section 1, Chapter IV)
- The decree shall not be a ground for renegotiating existing collective bargaining agreements, except for correcting wage distortions (Section 3, Chapter IV)
- The decree shall not withdraw or reduce existing allowances, bonuses, and other benefits (Section 4, Chapter IV)
- The decree and rules shall be enforced in accordance with the Labor Code and other applicable laws, with penalties for violations (Section 3, Chapter V)