Cost of Living Allowance (COLA) is given to workers to compensate for loss in purchasing power due to inflation. Rate of COLA is commonly pegged to a general index such as consumer price index (CPI).

May 09, 2011 – The National Capital Region-Regional Tripartite Wages and Productivity Board issued Wage Order No. 16, granting a P22.00 Cost-of-Living Allowance (COLA) to minimum wage earners. The wage order was published on May 11, and takes effect on May 26. Cities covered are the following: Caloocan, Las Pinas, Makati, Malabon, Mandaluyong, Manila, Marikina, Muntinlupa, Navotas, Paranaque, Pasay, Pasig, Quezon, San Juan, Taguig and Valenzuela and the Municipalities of Pateros.

The COLA is part of the minimum wage, but shall be excluded from the computation of wage related benefits, such as overtime pay, night differential, and 13th month pay. It shall however, form part of the computation of mandatory contributions to the Social Security System (SSS), PhilHealth, and Pag-ibig.

This grant of COLA aims to help workers cope with the continuing increase in the prices of essential commodities, while minimizing cost to employers who are facing high fuel-related production costs and majority of whom are micro and small enterprises.

The last wage increase took effect on July 01, 2010, in accordance with Work Order No. NCR-15 wherein all private sector minimum wage workers and employees in the National Capital Region received an increase in the amount of P22.00 per day.

Work Order No. NCR-16

Under Work Order No. NCR-16, all private sector minimum wage workers and employees will receive a Cost -of-Living Allowance (COLA) in the amount of P22.00 pesos. However, this does not include household or domestic helpers; persons in the personal service of another, including family drivers, and duly registered Barangay Micro Business Enterprise (BMBEs).

Table: The new daily wage rates of covered workers in the private sector in the National Capital Region as adjusted by the additional P22 COLA

Sector/ Industry Basic Wage New Wage Rates
Non-Agriculture P404.00 P426.00
Agriculture (Plantation and Non Plantation) P367.00 P389.00
Private Hospitals with bed Capacity of 100 or less P367.00 P389.00
Retail/Service Establishments employing 15 workers or less P367.00 P389.00
Manufacturing Establishments regularly employing less than 10 workers P367.00 P389.00

 

Sources:
  • Wage Order No. NCR-15 Regional Tripartite wages and Productivity Board – NCR
  • Wage Order No. NCR-16 Regional Tripartite wages and Productivity Board – NCR
  • DOLE Memorandum Submitted to President Aquino, May 10, 2011
  • Cost of Living Adjustment, Businessdictionary.com

 

Posted May 18, 2011

 
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