PROVIDING FOR A NEW STATUTORY MINIMUM WAGE

WHEREAS, while workers in most countries, developed as well
as underdeveloped, were experiencing wage freeze or even wage cuts, the
minimum wage of the Filipino worker actually registered an increased of
at least 27.6% during the last two years of severe world recession and
inflation;

WHEREAS, the 27.6% wage increase, which effectively raised
the minimum wage of P8.00 to P10.21, was decreed by the Government in
form of emergency allowance, the 13th month pay, the 10 paid legal
holidays, the 5-day attendance incentive with pay, the 10% night
differential pay and the 30% premium pay for work on rest days and
special holidays;

WHEREAS, the Government has succeeded in minimizing the loss
of real wages through vigorous inflation management policies which have
whittled down the inflation rate, The management of inflation was
undertaken through a system which combined subsidy for wage goods and an
all-out food production program designed primarily to protect the
purchasing power of the Filipino worker;

WHEREAS, in the face of the worldwide recession and
inflation, the Philippine economy actually experienced substantial
continuing growth resulting in the reduction of the unemployment to a
record low of 3.6%;

WHEREAS, despite the new benefits decreed by the Government
for the Filipino worker and the victory achieved over inflation, his
wage has suffered some real loss;

WHEREAS, to redress the decline in purchasing power incurred
by the Filipino worker as a result of continuing upward price spiral,
the Third National Tripartite Conference of workers, employers and
Government representatives agreed in Baguio City last April 25-27 to
recommend to the Government an early upward revision of the statutory
minimum wage, without prejudice to other adjustments, in the interest of
development and justice taking into consideration the imperatives of
productivity, employment, price stability, balance of payments and
industrial peace.

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. The minimum wage rate for non-agricultural
workers in the Metropolitan Manila Area shall be ten pesos (P10.00) a
day.

SEC. 2. The minimum wage rate for non-agricultural workers
in areas outside the Metropolitan Manila Area shall be nine pesos
(P9.00) a day.

SEC. 3. The minimum wage rate for agricultural workers in
plantations or organized agriculture shall be seven pesos (P7.00) a day.

SEC. 4. The minimum wage rate for agricultural workers in
all other types of agriculture shall be six pesos (P6.00) a day.

SEC. 5. The above rates shall be separate and distinct from
any other benefits and allowances already being enjoyed by the workers
under any existing laws, decrees or issuances.

SEC. 6. The minimum wage shall be eight pesos (P8.00) a day
for employees of registered cottage industries employing not more than
thirty (30) workers and registered cooperatives for the first three (3)
years from the effectivity of this Decree; retail and service
establishments regularly employing not more than ten (10) workers and
distressed employers.

SEC. 7. Nothing in this Decree shall be construed to reduce
any existing allowances and benefits of any form under existing laws,
decrees, or issuances and/or under any contract or agreement between
workers and employers, except as hereinabove provided.

SEC. 8. The Secretary of Labor shall issue appropriate rules
and regulations to implement this Decree and may establish terms and
conditions under which exemptions provided herein may be granted.

SEC. 9. Laws, decrees and other issuances inconsistent with
or contrary to this Decree are hereby repealed.

SEC. 10. This Decree shall take effect on June 1, 1976.

Done in the City of Manila, this 1st day of May 1976.