DOLE grants Metro workers P22 COLA hike

Published by rudy Date posted on May 13, 2011

Manila, Philippines – Workers in Metro Manila will be granted a P22 cost of living allowance (COLA), the Department of Labor and Employment (DOLE) said yesterday.

“Under labor standards regulations, COLAs are included in the computation of the mandatory related benefits of workers although it is excluded in the computation of the payment for the 13th month pay, overtime pay, night shift differential pay and PhilHealth premiums,” Labor Undersecretary Danilo Cruz said.

Cruz said when the wage order takes effect on May 26, non-agriculture workers in Metro Manila will receive a daily income of P426, while those in agriculture, retail and services, and manufacturing establishments will get P389 daily income.

Close to two million workers in the National Capital Region are expected to benefit from the newly issued wage order, he added.

After the Regional Tripartite Wages and Productivity Board Metro Manila approved the new wage order and published it in at least two national dailies, all employers are required to adopt the new minimum wage rate starting May 26.

However, Aurora Rep. Juan Edgardo Angara said workers in Metro Manila may not enjoy the additional COLA since one in five companies usually disobey wage hike orders.

“This shows that issuing wage orders is just half of the work. The other half is to see to it that the orders are followed,” he said.

Angara said 19 percent of the 35,391 companies visited by labor inspectors last year were found to be shortchanging their employees on their minimum wage. He said labor inspectors must make frequent inspections to improve compliance with wage adjustment orders.

“These inspectors have been able to make on-site corrections of minimum pay violations,” he said.

Last year, 1,533 out of 6,618 companies found violating wage orders made an “on-the-spot rectification of their mistake,” he added.– Mayen Jaymalin, Jess Diaz, The Philippine Star

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