MAKING MANDATORY THE PAYMENT OF EMERGENCY ALLOWANCE UNDER LETTER OF INSTRUCTIONS NO. 174.

• Number: Presidential Decree No. 525
• Sections: 10

Preamble

To enable the workers in the private sector to cope with the rising

cost of living under the prevailing abnormal situation, and consistent

with our policy of growth with justice, I, FERDINAND E. MARCOS,

President of the Philippines, by virtue of the powers vested in me by

the Constitution, do hereby decree and order:

Section 1

SECTION 1. Effective 1 August, 1974, all employers who have

not paid their employees emergency allowance in accordance with Letter

of Instructions No. 174 shall pay their employees who are receiving less

than P600.00 a month emergency allowance of P50.00 a month if their

capitalization is more than one million pesos, P30.00, if their

capitalization is more than 100 thousand pesos but does not exceed 1

million pesos and P15.00 if their capitalization is 100 thousand pesos

or less; Provided, That this Decree shall not apply to any

severely distressed industry or branch thereof, or enterprise therein,

as defined by the Department of Labor in accordance with established

standards and methods of determining the same.

Section 2

SEC. 2. The Secretary of Labor shall compile a list of all

employers who have voluntarily complied with Letter of Instructions No.

174 for such measures of recognition and assistance as he may deem

appropriate to grant to them within his authority. He shall furnish all

appropriate government institutions with copies of such list for the

same purpose.

Section 3

SEC. 3. The Department of Labor and the National

Labor Relations Commission shall not entertain any complaints under this

Decree against employers who have complied with Letter of Instructions

No. 174 and filed the necessary reports with the Department of Labor.

Section 4

SEC. 4. The example made by the government of granting a ten

per cent across-the-board increase to all government employees but in

no case more than P200.00 monthly shall serve as a guideline in

collective bargaining and in arbitration concerning wage adjustment: Provided,

however, That these provisions may not be invoked as a basis for

reopening existing collective bargaining agreements, including the wage

provisions thereof.

Section 5

SEC. 5. Employees entitled to emergency allowance under

Letter of Instructions No. 174 and this Decree may report violations

thereof to the regional offices of the Department of Labor two months

after the effective date of this Decree. After such period, all

employers who shall not have complied herewith may no longer avail of

the privileges granted under paragraphs 4 and 7 of Letter of

Instructions No. 174.

Section 6

SEC. 6. All employers shall report their compliance with

this Decree to the Labor Statistics Service of the Department of Labor

in Manila, furnishing a copy thereof to the nearest Department of Labor

regional office.

Section 7

SEC. 7. Any person guilty of the violation of this Decree

shall suffer a fine of not less than five thousand pesos nor more than

ten thousand pesos or an imprisonment ranging from six months to six

years or both such fine and imprisonment at the discretion of the court

or military tribunal: Provided, That if the offender is a

corporation, firm, partnership, or association, the penalty shall be

imposed upon the guilty officer or officers, as the case may be, and if

such guilty officer or officers are aliens, in addition to the penalty

prescribed, he or they shall be deported without further proceedings on

the part of the Commission on Immigration and Deportation.

Section 8

SEC. 8. The Secretary of Labor shall issue appropriate

rules and regulations to implement this Decree.

Section 9

SEC. 9. This Decree shall take effect immediately.

Done in the City of Manila, this 31st day of July, in the year of

Our Lord, nineteen hundred and seventy-four.

(Sgd.)

FERDINAND E. MARCOS

President of the Philippines

By the President:

(Sgd.)

ALEJANDRO MELCHOR

Executive Secretary