Implementation guidelines for PD No. 1614

The Letter is anchored on a policy of establishing a viable equilibrium among prices, incomes and wages.
The Letter requires implementation to take into account the imperatives of social justice and development.
The Letter directs sector-by-sector handling of PD No. 1614 in temporarily distressed, labor-intensive, and export-oriented industries.
The Letter expressly ties its wage rules to continuing worker well-being and industry viability and growth.

The Letter governs implementation of Presidential Decree No. 1614 for temporarily distressed, labor-intensive, and export-oriented industries.
The cottage and handicrafts industry is treated differently from other labor-intensive sectors under the Letter.
The sugar industry is treated differently from other labor-intensive sectors under the Letter.
The Letter addresses wage computation rules for hotels and restaurants, and application rules for garments and specified labor-intensive export industries.
The Letter addresses contractor liability for construction and service contractors where escalation clauses are absent.
The Letter sets a threshold-based exemption for retail and service establishments employing not more than ten employees.
The Letter includes a petition-approval compliance pathway for private educational institutions.

Presidential Decree No. 1614 does not apply to the cottage and handicrafts industry until further notice.
All employers in the cottage and handicrafts industry must pay the additional P2.00 increase provided under PD No. 1389 starting 1 April 1979.
For NACIDA registered industry employers employing not more than 30 workers, the Letter sets the industry minimum wage at P10.00.
For all other employers, the Letter sets the industry minimum wage at P11.00 outside Metro Manila and P12.00 in Metro Manila.

The sugar industry—both agricultural and industrial sectors—is exempted from Presidential Decree No. 1614 until a price-based condition occurs.
The exemption ends when the effective composite price of sugar to producers reaches thirteen US cents per pound at its Philippine peso equivalent.

In computing the minimum wage in the hotels and restaurants industry, 50% of the credited tips and/or service charges must be included for compliance with Presidential Decree No. 1614.

Presidential Decree No. 1614 applies in labor intensive export industries for the shoe and leather industry, furniture, electronics, and the garments industry effective May 1, 1979.
The Letter provides an adjustment period specifically for garments manufacturers, enabling adjustments especially in connection with their overseas contracts.
The P60 increase in allowance is effective June 1, 1979.

Where a contract provides no automatic escalation clause, compliance with Presidential Decree No. 1614 is the joint and several liability of the contractor and the principal.

Presidential Decree No. 1614 does not apply to retail and service establishments employing not more than ten employees.
Such establishments must pay on 1 April 1979 the P1 increase in minimum wage scheduled on 1 May 1979 under PD No. 1389.
Such establishments must pay another P1 increase on 1 May 1980.

Increases in wages and allowances granted unilaterally or under collective agreements that exceed those required by law may be credited as compliance with the emergency cost of living allowance increases under Presidential Decree No. 1614.
Crediting applies only when the excess increases were granted on or after December 1, 1979.

Private educational institutions must comply with PD No. 1614 upon approval of their petitions for tuition fee increases by the Ministry of Education and Culture.

The Minister of Labor must implement Presidential Decree No. 1614 in accordance with the Letter’s instructions for the covered industries and wage-computation contexts.
The Minister of Labor must submit from time to time reports on the progress of the implementation of these instructions.
The Letter is framed to be applied through administrative implementation of PD No. 1614 using the sectoral rules and effective dates it sets.