M a n i l a
PRESIDENTIAL DECREE No. 1751 December 14, 1980
INCREASING THE STATUTORY DAILY MINIMUM WAGE AT ALL LEVELS BY P4.00 AFTER INTEGRATING THE MANDATORY EMERGENCY LIVING ALLOWANCES UNDER PRESIDENTIAL DECREES 525 AND 1123 INTO THE BASIC PAY OF ALL COVERED WORKERS
WHEREAS, organized labor has petitioned for the improvement of the benefits granted to the workers under Presidential Decree 1713;
WHEREAS, further studies indicate the possibility of granting additional benefits to the workers without unduly impairing the viability of business and industry in the face of the present world economic crisis;
NOW, THEREFORE, I, FERDINAND E. MARCOS , President of the Philippines, by virtue of the powers vested in me by the Constitution, hereby decrees;
Section 1. The mandatory emergency living allowances under Presidential Decrees 525 and 1123 shall be integrated into the basic pay of all covered workers effective January 1, 1981.
Sec. 2. After integration, the statutory minimum wages shall be increased by P4.00 a day effective January 1, 1981 in establishments paying their workers P50 a month under Presidential Decree 525 and effective January 1, 1982 in establishments paying less.
Sec. 3. Presidential Decrees 525 and 1123 and their implementing rules are repealed.
Sec. 4. The Minister of Labor and Employment shall promulgate the rules implementing this Decree.
Done in the City of Manila, this 14th day of December, in the year of Our Lord, nineteen hundred and eighty.
RULES IMPLEMENTING PRESIDENTIAL DECREE NO. 1751
Pursuant to the authority vested in the Minister of Labor and Employment under Sec. 4 of Presidential Decree No. 1751, the following rules are hereby issued for the guidance and compliance of all concerned.
Section 1. Definition of Terms. As used in these Rules
(a) "Decree" means Presidential Decree No. 1751;
(b) "PD 525" means the Decree making mandatory the payment of monthly emergency living allowance of P15.00, P30.00 or P50.00, depending on the capitalization of the employer which took effect on 1 August 1974;
(c) "PD 1123" means the Decree granting a monthly across-the-board increase of P60.00 in emergency allowance prescribed by PD 525, which took effect on 1 May 1977; and
(d) "1713" means the Decree increasing the statutory minimum wage rate effective 18 August 1980.
Sec. 2. Integration of Allowances. Effective 1 January 1981, the mandatory living allowance provided under PD Nos. 525 and 1123 shall be integrated into the basic wage of all employees covered thereby. The amount to be integrated shall not be less than the P15.00, P30.00 or P50.00 monthly allowance prescribed by PD 525, whichever is applicable, and the P60.00 monthly allowance required by PD 1123, subject to the provision of Sections 3 and 4 of these Rules. (See amendment dated February 11, 1981, post.)
This Section shall also apply in determining the basic wage of employees hired on or after 1 January 1981.
Sec. 3. Minimum Wage Increase.
(a) The statutory minimum wage increase of P4.00 a day required by the Decree effective 1 January 1981 shall apply to all employees who are paid the minimum wage rates prescribed by PD 1713 in establishments paying their employees a monthly allowance of at least P50.00 under PD 525. Such employees shall be entitled to the P4.00 a day wage increase or to the total of the integrated allowance required under Sec. 2 hereof, whichever is higher.
(b) The total of the integrated allowance of such employees may be credited as part of the P4.00 a day wage increase; Provided, that where the total integrated allowance is less than P4.00 a day, the employer shall pay the difference.
(c) Employees receiving more than the minimum wage rates prescribed by PD 1713 shall be entitled to an increase in their basic wage in an amount equivalent at least to the total of the integrated allowance required under Sec. 2 thereof.
Sec. 4. Amount to be integrated.
(a) For monthly- paid employees, or those who are considered paid every day of the month, including unworked rest days and holidays, the total monthly amount shall be integrated into their monthly basic wage shall not be less than the total of the allowance applicable to them under PD Nos. 525 and 1123, or the total of P4.00 a day times the number of days considered paid in a month if they fall under Sec. 3 (a) hereof, whichever is higher.
(b) For daily-paid employees, or those who are paid only for the days they actually worked on ordinary working days, excluding the unworked rest days and holidays, the amount that shall be integrated into their daily basic wage shall be determined by dividing the total monthly allowance applicable to them under PD Nos. 525 and 1123 by 25.25 days.
(c) For daily-paid employees who regularly work less than 303 days a year, the amount that shall be integrated into their daily wage shall be determined by dividing the total yearly allowance applicable to them under PD Nos. 525 and 1123 by the number of their normal working days a year.
Sec. 5. Application of Sec. 4 (b). In the application of the rule under Sec. 4 (b) hereof, the following illustrations may be used as guides in the computation of the amount to be integrated into the basic wage of daily-paid employees:
(a) For those employed by establishments capitalized at P1 million or more:
|per PD 525 & 1123 P110.00|
|= P4.36 amount to be integrated|
(b) For those employed by establishments capitalized at less than P1 million but not less than P100,000.00:
Total Monthly Allowance
|per PD 525 & 1123 P90.00|
|= P3.56 amount to be integrated|
(c) For those employed by establishments capitalized at less than P100,000.00:
Total Monthly Allowance
|per PD 525 & 1123 P75.00|
|= P2.97 amount to be integrated|
Sec. 6. Deferment of Wage Increase. In establishments required by PD 525 to pay their employees a monthly allowance of P15.00 or P30.00, the effectivity of the statutory minimum wage increase of P4.00 a day prescribed by the Decree may be deferred to 1 January 1982.
Sec. 7. Prior Full or Partial Integration. Establishments that have already integrated in full the allowances under PD Nos. 525 and 1123 prior to 1 January 1981 shall be considered to have complied with the integration provisions of the Decree if the integration meets the requirements of these Rules. Those that have partially integrated the allowances shall integrate the balance thereof in accordance with these Rules.
Sec. 8. Minimum Wage of Special Groups of Workers. The minimum wage of learners, apprentices and handicapped workers shall in case start below seventy-five (75%) percent of the applicable minimum wage.
All recognized learnership and apprenticeship agreements entered into before 1 January 1980 shall be considered automatically amended by PD No. 1751 and these Rules insofar as their wage clauses are concerned.
Sec. 9. Basis of Minimum Wage Rates. The minimum wage rates prescribed by the Decree shall be for work of not more than eight (8) hours a day.
Section 10. Non-diminution of Benefits. The minimum wage rates prescribed herein shall be exclusive of whatever supplements and other benefits the employees had been enjoying free of charge at the time of the effectivity of the Decree.
Section 11. Transfer of Personnel. The transfer of personnel to areas outside Metropolitan Manila shall not be a valid ground for the reduction of the minimum wage rates being enjoyed by the workers prior to such transfer. The workers transferred to Metropolitan Manila shall be entitled to the statutory minimum wage applicable therein.
Section 12. Mobile and Branch Employees. The minimum wage rates of employees who by the nature of their work have to travel to and from Metropolitan Manila shall be those applicable in the place of domicile or headquarters of the employer.
The minimum wage rates of employees working in branches or agencies shall be those applicable in the place where they are stationed.
Section 13. Effects on Existing CBA's. Where the increase in the statutory wage rate or integration of the allowances required by the Decree results in significant distortions of the wage structure in an establishments, the employer or the union may initiate negotiations but only for the purpose of correcting the resulting distortions. Should a dispute arise in connection with the wage distortions the same shall be treated as an ordinary labor dispute.
Section 14. Relation to Other Issuances. Nothing in the Decree and these Rules shall be construed to authorize any employer to withdraw or reduce any existing allowances, bonuses and other benefits provided under existing laws, decrees, wage orders and other issuances or employer practice or policies.
Section 15. Effects on other Decrees and their Regulations. PD Nos. 525 and 1123 and their implementing rules are repealed. Presidential Decree Nos. 1614, 1634, 1678, and 1713 and its implementing rules shall remain in full force and effect.
Section 16. Enforcement Provisions. The Decree and these rules shall be enforced in accordance with the applicable provisions of the Labor Code and its implementing rules.
Section 17. Effectivity. These Rules shall take effect on 1 January 1981.
Done in the City of Manila, Republic of the Philippines this 11th day of January 1981.
AMENDMENT TO Sec. 2 OF THE RULES IMPLEMENTING PD. NO. 1751
By virtue of the powers vested in me by law, Sec. 2 of the implementing Rules of PD No. 1751 is hereby amended to read as follows:
"Sec. 2. Integration of Allowances and Minimum Hiring Rates. Effective 1 January 1981, the mandatory living allowance provided under PD Nos. 525 and 1123 shall be integrated into the basic wage of all employees covered thereby. The amount to be integrated shall not be less than the P15.00, P30.00 or P50.00 monthly allowance prescribed by PD No. 525, whichever is applicable, and the P60.00 monthly allowance required by PD No. 1123, subject to the provision of Sec. 3 and 4 of these rules.
THE MINIMUM WAGE OF EMPLOYEES HIRED ON OR AFTER 1 JANUARY 1981 BY ESTABLISHMENTS CAPITALIZED AT P1 MILLION OR MORE OR THOSE PAYING TO THEIR EMPLOYEES P50.00 A MONTH AS COST-OF-LIVING ALLOWANCE UNDER PD NO. 525 SHALL BE INCREASED BY P4.00 A DAY."
Done in the City of Manila, Republic of the Philippines this 11th day of February 1981.