Presidential Decree No. 1751 — 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;

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Section 1 Section 2 · After integration, the statutory minimum wages shall be increased by P4 Section 3 · Presidential Decrees 525 and 1123 and their implementing rules are repealed Section 4 Section 5 · Application of Sec Section 6 · Deferment of Wage Increase Section 7 · Prior Full or Partial Integration Section 8 · Minimum Wage of Special Groups of Workers Section 9 · Basis of Minimum Wage Rates Section 10 · Non-diminution of Benefits Section 11 · Transfer of Personnel Section 12 · Mobile and Branch Employees Section 13 · Effects on Existing CBA's Section 14 · Relation to Other Issuances Section 15 · Effects on other Decrees and their Regulations Section 16 · Enforcement Provisions Section 17 · Effectivity

Section 1

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.

Section 2

After integration, the statutory minimum wages shall be increased by P4

Section 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.

Section 3

Presidential Decrees 525 and 1123 and their implementing rules are repealed

Section 3. Presidential Decrees 525 and 1123 and their implementing rules are repealed.

Section 4

Section 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 Section 4 of Presidential Decree No. 1751, the following rules are hereby issued for the guidance and compliance of all concerned.

Section 5

Application of Sec

Section 5.

Application of Sec. 4 (b). In the application of the rule under Section 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 25.25 days = 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 25.25 days = P3.56 amount to be integrated

Total Monthly Allowance

per PD 525 & 1123 P75.00 25.25 days = P2.97 amount to be integrated

Section 6

Deferment of Wage Increase

Section 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.

Section 7

Prior Full or Partial Integration

Section 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.

Section 8

Minimum Wage of Special Groups of Workers

Section 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.

Section 9

Basis of Minimum Wage Rates

Section 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

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

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

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

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

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

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

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

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 SECTION 2 OF THE RULES IMPLEMENTING PD. NO. 1751

By virtue of the powers vested in me by law, Section 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 Section 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.