Providing For A New Statutory Minimum Wage

MALACAÑANG
M a n i l a

PRESIDENTIAL DECREE No. 928 June 1, 1976

PROVIDING FOR A NEW STATUTORY MINIMUM WAGE

WHEREAS, while workers in most countries, development as well as underdeveloped, were experiencing wage freeze or even wage cuts, the minimum wage of the Filipino worker actually registered an increase of at least 27.6% during the last two years of severe world recession and inflation;

WHEREAS, the 27.6% wage increase, which effectively raised the minimum wage of P8.00 to P10.21, was decreed by the Government in form of emergency allowance, the 13th month pay, the 10 paid legal holidays, the 5-day attendance incentive with pay, the 10% night differential pay and the 30% premium pay for work on rest days and special holidays;

WHEREAS, the Government has succeeded in minimizing the loss of real wages through vigorous inflation management policies which have whittled down the inflation rate. The management of inflation was undertaken through a system which combined subsidy for wage goods and an all-out food production program designed primarily to protect...

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Summary of Presidential Decree No. 928

Minimum Wage Rates
- Non-agricultural workers in Metropolitan Manila Area: ₱10.00 per day (Section 1)
- Non-agricultural workers outside Metropolitan Manila Area: ₱9.00 per day (Section 2)
- Agricultural workers in plantations or organized agriculture: ₱7.00 per day (Section 3)
- Agricultural workers in all other types of agriculture: ₱6.00 per day (Section 4)

Special Provisions
- Minimum wage is separate and distinct from other benefits and allowances (Section 5)
- For registered cottage industries employing not more than 30 workers, registered cooperatives, retail and service establishments regularly employing not more than 10 workers, and distressed employers: ₱8.00 per day for the first 3 years (Section 6)
- Existing allowances and benefits under laws, decrees, issuances, contracts, or agreements shall not be reduced, except as provided (Section 7)

Implementation
- Secretary of Labor shall issue rules and regulations to implement the Decree and establish terms and conditions for exemptions (Section 8)
- Inconsistent laws, decrees, and issuances are repealed (Section 9)
- Effective date: June 1, 1976 (Section 10)