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DOLE explains COLA computation and benefits

Posted by on May 13th, 2011 and filed under National. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

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By PNA and U.S. News Agency / Asian

Acting Labor and Employment Secretary Danilo P. Cruz explained on Friday that the P22 cost-of-living allowance granted under the new approved Wage Order No. 16 in the National Capital Region (NCR) is included in the computation of mandatory monetary benefits of minimum wage earners in the private sector in the region.

“After the Regional Tripartite Wages and Productivity Board (RTWPB) in the National Capital Region has approved Wage Order No. 16 on May 9 granting a P22 COLA increase in the daily compensation of minimum wage workers in the private sector and after this has been published in a newspaper of general circulation as required, our role now is to explain the COLA computation and its benefits to our workers,” said Cruz.

According to Cruz, the COLA granted under Wage Order No. 16 is included in the computation of private sector workers’ five days service incentive leave, vacation leave, sick leave, paternity and maternity leaves, and leaves under Republic Act No. 9262, or the Victims of Violence against Women and their Children.

He added that the COLA is also computed in the payment of 12 national holidays and three special holidays. It is also included in the determination of the premium payments for Social Security System (SSS) and Pag-IBIG, and separation and retirement pays.

“Under labor standards regulations, COLAs are included in the computation of the mandatory related benefits of workers,” said Cruz.

The COLA, however, is excluded in the computation of the payment for the 13th month pay, overtime pay, night shift differential pay and PhilHealth premiums pursuant to Presidential Decree No. 525 or Letter of Instruction No. 174.

Upon effectivity on May 26, 2011, non-agriculture workers in Metro Manila will receive a daily income of P426, while those in the agriculture, retail and services, and manufacturing establishments will get P389 daily income. Close to two million workers in the nation’s premier capital will benefit from the COLA.

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