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|
|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|
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
Stay up to date with your government.Subscribe Now
Stay up to date with your government.
Subscribe to Daylight, a weekly newsletter that features good news about the Philippines and Filipinos.
After signing up, you will receive a confirmation email that you will need to click through to confirm your subscription.×
Share on social media
More from the Briefing Room
- At the 2014 Search for Outstanding Volunteers: Solidarity and selflessness ablaze through volunteerism
- DOTC year in review
- DOLE prepares for APEC 2015 human resource development meet
- VIDEO: Celebration of the 79th AFP Day
- Statement: Secretary Balisacan during the 2014 Year-end Media Briefing
- 33,000 DSWD-identified poor fisherfolk to get livelihood aid