Factory worker in Valenzuela City received salary in centavos. Is it legal tender?

June 29, 2021 - 2:10 PM
This image shows the two-day salary of P1,056 of a factory worker in Valenzuela City all in five and ten centavo coins. (Valenzuela City Public Information Office/Released)

A factory worker in Valenzuela City reached out to the city government after receiving his two-day salary of P1,056 all in five and ten centavo coins.


Valenzuela Mayor Rex Gatchalian met with the employee and the representative of Next Green Factory on Monday, June 28, to discuss the said complaint.

“Ang manggagawa, hindi dapat kinakawawa. Hindi dapat maliitin ang mga manggagawa ng ganito. Ito ay nakakainsulto at nakakawala ng dignidad.” the mayor said in a Facebook post.

Gatchalian set another meeting on Wednesday, June 30, because the owner of the company is currently out of town.

“I’ll face the owner himself with the concerned worker on Wednesday,” he added. “Sending a company representative won’t cut it for me.”

Gatchalian guarantees that the “cruel and unusual” labor practice will be dealt with accordingly.

He also said in a tweet that the City Government of Valenzuela gave cash assistance to the factory worker to help him.

Following the updates posted by Valenzuela City’s Public Information Office, several online users lamented the move of the factory and called the owners out for their lack of “decency.”

“Where’s the decency?” a Twitter user asked.

“Ang babastos ninyo naman sa mga trabahador ninyo. P1k na nga lang, ganyang lagay pa ibibigay ninyo,” another commented.
“Reminds me of the movie ‘Horrible Bosses,'” a Twitter user wrote. 

“Bukod sa ang k*pal! This is not even a legal tender,” a Twitter user said.

“Legal tender who? Hassle,” another tweeted with facepalming and weary face emojis. 

On legal tender

Bangko Sentral ng Pilipinas defines legal tender as the “currency is offered in payment of a debt, public or private, the same must be accepted.”

According to a circular it released in 2016, coins in denomination of one, five, ten, and 25 centavo coins shall be legal tender in amounts as long as it does not exceed P100.

“Philippine currency notes have no limit to their legal tender power. In particular, all notes and coins issued by the BSP shall be fully guaranteed by the Government of the Republic of the
Philippines and shall be legal tender in the Philippines for all debts, both public and private as stipulated under Section 52 of R.A No. 7653,” the BSP’s circular read.

“However, in the case of coins in denomination of 1-, 5-, and 10-Piso they shall be legal tender in amounts not exceeding PHP1,000.00 while coins in denomination of 1-, 5-, 10-, and 25-Sentimo shall be legal tender in amounts not exceeding PHP100.00, pursuant to BSP Circular No. 537, Series of 2008,” it added.

The Valenzuela City’s PIO also cited this circular in a tweet.