Increase in Minimum Wage and Living Allowances

The Decree directs the wage increase to respond to a continuing crisis arising from wide-ranging developments in the world’s economic and political systems.
The Decree aims to sustain national growth and support a development path that is both enduring and compassionate.
The Decree relies on the proposals of the National Tripartite Conference on Wages, Employment and Industrial Relations convened on 15–16 August, 1980.
The Decree is intended to adjust wages to ensure a decent living wage for workers while supporting the continued viability of business and industry.

Section 1 increases minimum daily wage rates by PHP 1.00.
Private employers must pay employees with wage or salary not more than PHP 1,500.00 a month an additional mandatory living allowance.
The mandatory living allowance amounts under Section 1 are:
- PHP 60.00 a month for non-agricultural workers;
- PHP 45.00 a month for plantation workers; and
- PHP 30.00 a month for agricultural non-plantation workers.
Section 1 expressly makes these living allowances additional and mandatory for the covered wage/salary level.

Section 2 authorizes the National Wages Council to grant full exemption or deferment of compliance for existing or new enterprises that are or may become temporarily distressed or dislocated.
Section 2 requires that the National Wages Council act on petitions with complete supporting documents.
Section 2 sets the processing period: the Council must act on such petitions within one month from submission.

Section 3 allows crediting under specified conditions for increases in wages or allowances.
Section 3 covers increases granted unilaterally by employers or by collective agreement.
Section 3 limits the time window: the increase must have been granted from July 1, 1980 up to the date of the effectivity of the Decree.
Section 3 provides that such increases may be credited to the amount of allowances provided in the Decree.

Section 4 directs the National Wages Council to review all existing decrees granting:
- mandatory living allowances, and
- basic minimum wages.
Section 4 requires the Council to consolidate or restructure the allowances for ease of administration and enforcement.
Section 4 requires consolidation/restructuring to reaffirm the basic income of the lowest categories of workers.

Section 5 requires the Minister of Labor and Employment to initially promulgate rules to implement the Decree.
Section 6 provides a protective rule: nothing in the Decree reduces or eliminates any benefit already owed to a worker under existing law, contract, or practice.

Section 7 provides immediate effect, requiring compliance from the Decree’s effectivity.
Section 6 preserves existing worker entitlements by preventing diminution or elimination of benefits already due under law, contract, or practice.
The minimum wage increase and mandatory living allowances under Section 1 operate as the Decree’s core wage adjustment measures.