Under Article  11,  Section  18 of the Constitution,  "7lhe State aff7'rms /abor as a pr/.mary
sOcial economic force.  It shall protect the rights of workers and promote their welfa-re." It .is
also provided in Article  19 of the New Civil Code that "Every person must i.n the exerci'se of
his rights.and  in the perform_ance of his duties,  act with justice,  give everyone his due,  and
observe honesty and good /ar.fh, " In view of the above-stated  provisions,  it is a well-settled
policy of the State to afford  protection to labor and  promote the rights of workers, which for
the purpose of this bill, refers to a just wage.
A just wage  includes  the  intrinsic  right  to  a  full  wage  in  accordance  with  contract-
stipulations  between  employer and  employee,  the  extent of service  rendered  by the  latter,
the  criterion  of  credentials,   competence  or  ability,   and  deductions  as  provided   by  law.
However,  it  is  now  becoming  a  prevalent,  if  not  a  rampant  practice,  whether  in  public  or
private   establishments,   for  salary-disbursing   officers   to   lend   money   before   the   actual
payment of salary becomes due, most especially to workers who, in dire need or in cases of
emergency,  are  forced  to  borrow  from  the  former  to  be  paid  when  the  salary  falls  due,
usually at usurious interests. Given this scenario, workers fall prey to the greed of disbursing
officers, the effect of which is detrimental to the well-being of the workers.  Hence, there is a
need to curb this practice. This bill is designed to address such wrong.
In consideration of the foregoing, support for this bill is earnestly requested.


NINETEENTH CONGRESS                  )
REPUBLIC OF THE PHILIPPINES    )
First Regular session                           )
HOUSE OF REPRESENTATIVES
Introduced by Representative Rufus a. Rodriguez
House Bill No.  53 8 2
AN ACT
PENALIZING     THE    ACT    OF    MONEYLENDING    WITH     INTEREST    BY    SALARY-
DISBURSING  OFFICERS  IN  PUBLIC  OR  PRIVATE  ENTITIES,  PROVIDING  PENALTIES
FOR VIOLATIONS THEREFOR, AND FOR OTHER PURPOSES
Be it erl?ct.ed by the Senate and  House of Representatives of the Philippines in Congress
assembled:
SECTION 1.   Dec/arati.on of po//.cy -lt is the policy of the State to afford protection to labor
and to protect the rights of workers.  Pursuant to this policy, the right of the worker to receive
his full wage is hereby affirmed and protected.
SEC 2. Deffn/-fr'on of Terms - As defined in this Act: -
a)   Full-Wage  -  means the  net take-home  pay of the worker after the  deduction  of
such charges authorized by law;
b)   Salary-Disbursing   Officer  -  refers  to  a  treasurer,  finance  officer,   accountant,
cashier,  paymaster and their subordinates or any other person who has direct or
indirect control of the salary of an employee.
SEC 3. ProAi-A/.fed Acts,-Pena/fi-es -The following acts are prohibited:
a)   any private individual or independent money lending activity made by the salary-
disbursing officer with interest or any other consideration;
b)   any   deduction   privately,   individually   or   independently   made   by   the   salary-
disbursing officer from the salary of an employee in connection with a loan;
c)   the unauthorized withholding of salary by the salary-disbursing officer because of
a loan; and
d)   the "buying" of salary or giving or advancing to the employee an amount less than
the full wage.
Any salary-disbursing  officer who shall  commit any of the  prohibited  acts  mentioned
in  this  Section  shall  suffer a fine of thrice the amount of the  salary due the employee and
imprisonment for not less than six (6) months.
Any  other  person  who  commits  similar acts  in  anyway whatsoever  or who  acts  in
behalf of the salary-disbursing  officer shall  suffer the  same fine and  penalty as  provided  in
the preceding paragraph.
Loans offered  by the government and  private entities,  including  bank and  company
loans and  cooperative credit facilities,  and  credit assistance by associations,  are exempted
from the coverage of this Act.
SEC   4.   Separabi./i.fy   C/ause   -   lf   any   provision,   or   part   hereof,   is   held   invalid   or
unconstitutional,  the  remainder  of  the  law  or  the  provision  not  otherwise  affected  shall
remain valid and subsisting.


SEC 5. Repea/i.ng C/ause - Any law, presidential decree or issuance, executive order, letter
of  instruction,  administrative  order,  rule  or  regulation  contrary  to  or  inconsistent  with,  the
provisions of this Act is hereby repealed, modified or amended accordingly.
SEC 6. Effect/.y/.fy C/ause -This Act shall take effect fifteen (15) days after its publication in
at least two (2) newspapers of general circulation.
Approved,