The above-mentioned law merely specifies that, in principle, all banknotes and coins issued by the GNP are legal tender, which means that they can be used as a means of payment and must be accepted as such. However, there is a limit to the legal tender power of coins. On the one hand, coins with a value of one peso, five pesos and ten pesos are considered legal tender when they are used in quantities not exceeding 1,000 pesos. On the other hand, denominations of one-centavo, five centavos, ten centavos and twenty-five centavos coins are considered legal tender when used in quantities not exceeding 100 pesos. Can an employer pay employees` wages only in coins? According to Circular No. 537 series of 2006, issued by the Bangko Sentral ng Pilipinas (BSP), payment, particularly in the form of coins, is «legal tender» or must be accepted as long as it does not exceed a certain limit. For denominations P1 to P5, they cannot exceed 1,000 pesos, while 1, 5, 10 or 25 cents in total cannot exceed 100 pesos. Several social media users pointed this out, citing the BSP circular after the report of a municipal employee in Valenzuela who received his salary in coins worth 1,056 pesos, mostly in 5-cent and 25-cent denominations and one peso, made the rounds on Monday. Some have even stated that the action of the worker`s employer is illegal, although the local government of Valenzuela and the worker of the factory concerned have not yet carried out a complete inventory of parts, so the legality of the incident cannot yet be said.
But the factory worker felt the action was carried out «deliberately» as a form of «retaliation» by the company against him for complaining about alleged unfair labor practices, Mayor Rex Gatchalian said. Payments in a currency other than the agreed currency are not legal tender unless they are made in a currency, which is legal tender in the Philippines. Legal tender is the currency that the debtor can force the creditor to accept to pay a debt if it is offered for the correct amount. While coins issued by GNP are fully guaranteed by the government and are legal tender for all public and private debts, they are legal tender only for the following amounts: Dear Jun, The legal tender status of a currency results from the express legal recognition of its use in the settlement of financial obligations in a particular jurisdiction. Demonetization is the process of removing the monetary value of a legal tender by the issuing authority. Demonetized money is no longer accepted for payment for goods and services. So the next time you`re in possession of a crumpled peso note that has lost its surface, let a ruler measure the extent of the disfigurement. If it is less than 2/5 of the surface, insist that it is legal tender. So, if you decide to pay in coins, you need to make sure that your coin payment does not exceed the above amounts, otherwise it will not be considered legal tender for the item you want to purchase. This means that the seller can legally refuse your payment in coins. On the other hand, banknotes, regardless of their value, are legal tender for any amount of bonds. Section 4.1 of the FX Handbook expressly provides that any person may import or export banknotes and coins, cheques, money orders and other bills of exchange drawn in peso to banks operating in the Philippines up to a maximum of PHP 50 or move them in or out of the country or transfer them electronically.
000.00 without prior approval from BSP. The term «electronic transfer» as used here refers to a system whereby authorization to debit or credit an account (bank, company or individual) is granted by bank transfer, in which case or without a source document being sent for identification by authority. This requirement applies to the import and export of Philippine national currencies, regardless of the country. In our country, the Bangko Sentral ng Pilipinas (BSP) has exclusive power and authority to issue currency. All notes and coins issued by BSP are fully guaranteed by the Government of the Republic of the Philippines pursuant to Section 52 of RA 7653, known as the «New Central Bank Act.» In the case of coins, Circular GNP 537, series of 2006, provides that coins are legal tender for amounts not exceeding P 1,000 for denominations of 1 piso, 5 piso, 10 piso and for amounts of P 100 for denominations of 1 sentimo, 5 sentimo, 10 sentimo and 25 sentimo. What if reason did not prevail? Could the buyer have forced the seller to accept payment in coins? Are the coins legal tender? A person may import (import) or withdraw (export) Philippine currency in the Philippines without the prior permission of Bangko Sentral ng Pilipinas, either physically or by electronic transfer. Forms of currency include Philippine banknotes and coins, checks, money orders and other bills of exchange drawn in Philippine pesos against banks operating in the Philippines. What about grades? Is there a limit to their legal tender? Nothing.
