M a n i l a



WHEREAS, since 1974, as a result of the periodic rounds of quantum increases in the prices of imported crude oil, the President/Prime Minister has used his authority under the Constitution to grant the workers immediate relief from the impact of spiraling prices in consumer goods and services in the form of increases in wages, allowances or other wage-related benefits;

WHEREAS, due to the continuous instability of wages and prices, brought about by external economic factor beyond the nation's control, causing abrupt and drastic erosion in the real income of the workers, it is imperative, in the interest of social and economic stability, that the President/Prime Minister retain such powers; and

WHEREAS, such stand-by powers can be effectively and immediately exercised thru the issuance of wage orders either upon the recommendation of the National Wages Council created under Executive Order No. 614, or at the President/Prime Minister's own initiatives.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order and decree:

Section 1. Determination of new appropriate minimum wages. The President/Prime Minister may, at his own initiative and on the basis of urgent economic necessity or upon recommendation of the National Wages Council, make a determination of appropriate new minimum wage rates, allowances or other wage-related benefits whether on a national, regional or industry basis, and issue the corresponding wage orders. It shall be the duty of the National Wages Council to recommend such determination whenever it finds in the course of its continuing study of the wage rates that the prevailing minimum wages are no longer adequate to maintain the minimum standard of living necessary for the health, efficiency, and general well-being of the workers within the framework of the national development program.

Section 2. Wage Recommendation. In the determination of the appropriate new minimum wage rates or other benefits, the National Wages Councils shall either conduct public hearings, giving notice to interested parties, or hold, in coordination with the Ministry of Labor and Employment, tripartite conferences for the purpose. The Council shall have thirty (30) days from the completion of the hearings or conferences within which to recommend to the President/Prime Minister the issuance of the wage order establishing appropriate new minimum wage rates or wage-related benefits.

Section 3. Wage Order. If the President/Prime Minister approves the recommendation, he shall immediately issue a wage order prescribing the new minimum wage rates or other benefits. If he rejects the recommendation of the Council, he shall issue a statement of his reasons therefor and shall direct the Council to consider the same immediately.

Section 4. Effectivity of Wage Order. A wage order shall take effect fifteen (15) days after its publication in a newspaper of general circulation.

Section 5. Effectivity. This Decree shall take effect immediately.

DONE in the City of Manila, this 16th day of January, in the year of Our Lord, nineteen hundred and eighty-one.

The Lawphil Project - Arellano Law Foundation