M a n i l a

PRESIDENTIAL DECREE No. 432 April 8, 1974


WHEREAS, the effect of the spiralling costs of prime commodities brought about by the energy crisis and worldwide inflation are felt most by those belonging to the low-income or salary groups;

WHEREAS, it is the policy to alleviate the plight of those belonging to the low-income levels as enunciated in Presidential Decree No. 390 promulgated on February 17, 1974;

WHEREAS, the local governments have shown the willingness to provide their low-salaried employees with emergency cost-of-living allowances to cushion the impact of increased prices;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby decree and order the following as part of the law of the land;

Section 1. Any provision of law, decree, executive order, administrative order, letter of instruction, or rule and regulation to the contrary notwithstanding, all provinces, cities, and municipalities are hereby authorized to grant their employees whose salaries or wages are less than six hundred pesos (P600.00) per month, or its equivalent if on the daily basis, emergency cost-of-living allowances in addition to their respective salaries or wages.

Section 2. The amount granted shall cover only the difference between the actual salary received and the rate of six hundred pesos (P600.00) a month, but in no case shall the monthly allowance exceed fifty pesos (P50.00).

If there are fund limitations, the salary ceiling of those that would be benefitted may be reduced from six hundred pesos (P600.00) per month to a lower rate, and the amount of the allowance adjusted accordingly.

Section 3. The grant of said allowances may be retroactive as of February 18, 1974, the date of effectivity of Presidential Decree No. 390, subject to the availability of local funds.

Section 4. The appropriations for said emergency allowances shall not be included in the computation of the maximum salary percentages fixed under Republic Act No. 4477 for provinces and cities and Republic Act No. 2638 in the case of municipalities.

Section 5. The Secretary of Finance and the Secretary of Local Government and Community Development shall utilize the facilities of their respective departments in ensuring the uniform application of the provisions of this Decree and shall promulgate the rules and regulations necessary for effective implementation.

Section 6. This Decree shall take effect immediately.

Done in the City of Manila, this 8th day of April, in the year of Our Lord, nineteen hundred and seventy-four.

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