Wage Increase and Cost-of-Living Allowance PD 1614

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PRESIDENTIAL DECREE NO. 1614: Wage Increase and Cost-of-Living Allowance PD 1614

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Title Supreme Court: Wage Increase and Cost-of-Living Allowance PD 1614

Law: Presidential Decree No. 1614

Decision Date: Mar 14, 1979

In response to the OPEC oil crisis, Presidential Decree No. 1614 implemented minimum wage increases and emergency cost-of-living allowances to help fixed-income groups adjust to rising commodity prices in the Philippines.

tripartite conference

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Additional Cost-of-Living Allowance (COLA)

A supplemental cost-of-living allowance is granted effective April 1, 1979 to workers earning not more than P1,000.00 monthly.
The allowances are:
- Non-agricultural workers: P60.00 per month
- Plantation agricultural workers: P40.00 per month
- Non-plantation agricultural workers: P20.00 per month

Policy Basis and Context

The Decree addresses inflation driven by OPEC oil price increases and oil production disruptions, impacting commodity prices and cost of living.
It recognizes the vulnerability of fixed-income groups, particularly wage earners, to economic changes.
The state policy emphasizes initiating adjustments in wages and prices to establish a new, stable economic equilibrium.

Tripartite Consultation and Consensus

The wage increase and COLA resulted from a consensus reached during a National Tripartite Conference involving representatives from labor, management, and government.
This conference was held at the Development Academy of the Philippines, Tagaytay City, on March 7 and 8, 1979 after thorough consultations.

Implementation and Considerations

The Minister of Labor is tasked with promulgating implementing rules, addressing application, coverage, and effectivity.
Consideration must be given to the viability of distressed, labor-intensive, and export-oriented industries.
The well-being of workers in these industries must also be factored into implementation decisions.

Legal Authority

The decree is issued under the constitutional powers vested in the President of the Philippines.
It reflects the exercise of executive authority to address urgent socio-economic issues affecting workers' wages and living conditions due to national and global economic circumstances.

END