Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 1123)
The primary objective of Presidential Decree No. 1123 is to protect wages, incomes, and employment against the erosion caused by imported and domestic inflation by instituting an across-the-board emergency allowance increase for private sector workers and a salary increase for public sector employees.
Presidential Decree No. 1123 was enacted on April 21, 1977, and took effect on May 1, 1977.
There is an across-the-board increase of sixty pesos (P60.00) in emergency allowance for private sector workers. This changes the monthly emergency allowance under PD 525 as follows: from P50.00 to P110; from P30.00 to P90; and from P15.00 to P75.
All employees of the government who receive a monthly salary of not more than P600 are entitled to an across-the-board 10% salary increase effective May 1, 1977.
All private employers must report compliance with the decree to the Labor Statistics Service of the Department of Labor in Manila and furnish a copy of the report to the nearest Department of Labor Regional Office.
The Secretary of Labor and the Commissioner of the Budget are responsible for issuing appropriate rules and regulations to implement PD No. 1123 for their respective sectors.
Yes, under the rules and regulations issued, distressed employers whether public or private may be exempted from the increases while in such condition, in the interest of development and employment.
PD No. 525 provided emergency allowance; PD No. 851 provided the 13th month pay; PD No. 928 established new minimum wages; and PD No. 442 granted 10 paid legal holidays.
The policy is to protect wages, incomes, and employment against the erosive effects of both imported and domestic inflation through measures including subsidies, price controls, and mandated allowances and pay increases.
The emergency allowance increase applies to all employees in the private sector as provided under PD 525, while the salary increase applies to all government employees earning not more than P600 monthly.