Providing For Additional Mandatory Emergency Living Allowance For Wage Earners

MALACAÑANG
M a n i l a

PRESIDENTIAL DECREE No. 1634 September 1, 1979

PROVIDING FOR ADDITIONAL MANDATORY EMERGENCY LIVING ALLOWANCE FOR WAGE EARNERS

WHEREAS, representatives of workers, employers and the Government met at a National Tripartite Conference at Puerto Azul, Ternate, Cavite, on August 16 and 17, 1979, for the purpose of considering measures for the protection of wages, promotion of employment and industrial peace, ensuring economic viability and growth in the face of the global energy crisis;

WHEREAS, the Conference recommended immediate restoration of the purchasing power of the effective minimum wage as of April 1979, with provision for exemption from or deferment of compliance in the case of temporarily distressed enterprises;

WHEREAS, in addition to the current efforts of the Government to hold down prices, especially those of prime commodities, it is urgently necessary to act immediately on the recommendation of the Conference in order to provide timely and adequate relief for the working masses in the face of rising costs of living;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President...

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Summary of Presidential Decree No. 1634

Providing Additional Mandatory Emergency Living Allowance for Wage Earners

• Employers must pay employees earning ₱1,500 or less per month an additional mandatory emergency living allowance of ₱60 effective September 1, 1979, and another ₱30 effective January 1, 1980. (Section 1)

• Exemptions from the allowance:
- Cottage industries, handicrafts, and shellcrafts. (Section 1a)
- Small and medium enterprises established after the decree, for 2 years from start-up. (Section 1b)
- Retail and service enterprises outside Metro Manila and cities with population ≤150,000; in Metro Manila and cities with population >150,000, those employing ≤15 workers. (Section 1c)
- Non-plantation agriculture and plantations/enterprises with area ≤24 hectares or employing ≤20 workers; sugar industry subject to LOI 829. (Section 1d)
- Labor-intensive and export-oriented enterprises in garments, footwear, furniture, leather, and electronics until December 31, 1979, unless able to pay as determined by the Minister of Labor. (Section 1e)
- Private hospitals outside Metro Manila; in Metro Manila, those with bed capacity ≤100. (Section 1f)
- Private educational institutions until allowed to adjust tuition fees. (Section 1g)
- Employers who have granted wage increases of at least ₱60 on or after August 1, 1979. (Section 1h)

• For construction contracts based on lower wages before the decree, the owner/principal must compensate the contractor for the labor cost difference in remaining work. (Section 2)

• In the hotel and restaurant industry, 50% of credited tips/service charges may be included in computing the minimum wage and allowances. (Section 3)

• The Minister of Labor may grant full or partial exemption or deferment to temporarily distressed or new enterprises upon recommendation of concerned ministries. (Section 4)

• A tripartite advisory committee may assist the Minister of Labor in implementing the decree. (Section 4)

• The Standing Cabinet Committee shall monitor implementation, receive grievances, and act on adverse effects. (Section 5)

• Violations shall be punished under applicable Labor Code provisions for non-payment of wages and benefits. (Section 6)

Implementing Rules:
• Defines terms such as cottage industries, small and medium enterprises, retail and service enterprises, agriculture, plantations, and labor-intensive export-oriented industries. (Section 1)
• Outlines criteria for determining if an employer is actually distressed or facing potential distress to qualify for exemption. (Section 8)
• Specifies requirements for applying for exemption, including financial statements and tax returns. (Section 7)
• Clarifies how the allowance should be paid, credited benefits, relation to other agreements and issuances, and enforcement provisions. (Sections 9-21)