COMMISSION ON AUDIT CIRCULAR NO.

83-218 November 7, 1983

TO : All Heads of Ministries and Managing Heads of Government-Owned or

Controlled Corporations; Chiefs of Bureaus and Offices of the National
Government; Regional Directors; Chief Accountants; Governors, City/Municipal
Mayors; COA Managers; General Counsel; COA Regional Directors; National,
Local and Corporate Auditors; Heads of Auditing Unit and All Other Concerned.

SUBJECT : Increasing the statutory minimum wage rates and living allowances of workers in
the private sector.

For the information and guidance of all concerned, quoted is the full text Wage Order No.
3, dated November 7, 1983:

"WAGE ORDER NO. 3

INCREASING THE STATUTORY MINIMUM WAGE RATES AND LIVING ALLOWANCES

OF WORKERS IN THE PRIVATE SECTOR

WHEREAS, the recent adjustment in the value of the Philippine Peso vis-a-vis the US
dollar has made it imperative to increase the prices of domestic petroleum products, transport
fares and other consumer goods and services;

WHEREAS, such increase will undoubtedly bring about an erosion of the purchasing
power of the peso;

WHEREAS, it has been the policy of the government to protect the workers' wages
against inflation to ensure the workers health, efficiency and well-being with due regard to the
need to ensure increased productivity and the viability of business and industry.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue

of the authority granted by Presidential Decree No. 1790 do hereby issue this Wage Order.

SECTION 1. Effective November 1, 1983 the statutory minimum wage rates for
workers in the private sector shall be increased by P1.00 per day.

Effective December 1, 1983, the statutory minimum wage rates shall be further
increased by P1.00 per day.

SECTION 2. Effective November 1, 1983, the minimum daily living allowance of

workers in the private sector, whose basic salary or wage is not more than P1,800.00 a month,
shall be increased by:

(a) P3.00 for non-agricultural workers;

(b) P2.50 for plantation agricultural workers; and
(c) P1.00 for non-plantation agricultural workers.
 Effective December 1, 1983, the daily living allowance rates shall be further increased
by;

(a) P1.50 for non-agricultural workers;

(b) P1.00 for plantation and non-plantation agricultural workers

SECTION 3. All increases in wages and/or allowances granted or paid by employees

between August 1 and November 6, 1983 shall be credited as compliance with the minimum
wage allowance adjustments prescribed herein, provided that where the increases are less than
the applicable amount provided in this Order, the employer shall pay the difference. Such
increases shall not include anniversary wage increases provided collective bargaining
agreements unless the agreements expressly provide otherwise and those granted under Wage
Order No. 2.

This Section shall not apply to merit wage increases and to those resulting from the
regularization or promotion of employees.

SECTION 4. In case of contracts for construction projects and for security, janitorial
and similar services, the increase in the minimum wage and allowance rates of workers shall be
borne by the principal or client of the construction/service contractor and the contract shall be
deemed amended accordingly, subject to the provisions of Section 7 (C) of this Code.

SECTION 5. The National Wages Council shall hold tripartite consultations on or

before March 15, 1984 to determine the manner and extent this Wage Order shall be
implemented in the sugar industry.

SECTION 6. Where the application of the minimum wage rate prescribed herein results
in distortions of the wage structure of an establishment, the employer and the union shall
negotiate to correct distortions. Any dispute arising from wage distortions shall be resolved
through the grievance procedure under their collective bargaining agreement or through
conciliation.

In case where there is no collective agreement or recognized labor organization, the

employer shall endeavor to correct such distortions in consultation with their workers. Any
dispute shall be resolved through conciliation by the appropriate Regional Office of the Ministry
of Labor and Employment or through arbitration by NLRC Arbitration Branch having jurisdiction
over the workplace.

SECTION 7. This order shall not apply to the following:

(a) Household or domestic helpers, including family drivers and persons in the
personal service of another.

(b) Workers in retail or service enterprises regularly employing not more than ten
(10) workers in respect of allowances provided under this Order.

(c) Workers of distressed establishments which may be fully or partially exempted by

the National Wages Council for a period not exceeding two years from the
effectivity of this Order, provided that special consideration shall be given to
establishments employing not more than ten (10) workers.
 SECTION 8. Learners, apprentices and handicapped workers shall be entitled to not
less than seventy-five per cent of the applicable minimum wage rates. Such workers shall be
entitled to the full living allowance provided under this Order.

Workers under the Batarisan Program shall be entitled to at least seventy-five percent of
the minimum wage increase and to the full living allowances prescribed in this order.

SECTION 9. The National Wages Council shall promulgate rules and regulations to
implement this Wage Order, including guidelines on exemptions and the correction of wage
distortions.

SECTION 10. This Wage Order shall take effect on November 1, 1983.

DONE IN THE CITY OF MANILA, this 7th day of November, 1983

(SGD.) FERDINAND E. MARCOS

President of the Philippines

By the President:

(SGD.) JUAN C. TUVERA

Presidential Executive Assistant"

All concerned should be guided accordingly.

For the Commission:

(SGD.) FRANCISCO S. TANTUICO, JR.,

Chairman