Payment of ECOLA (Emergency Cost of Living Allowance)

ECOLA (Emergency Cost of Living Allowance) is a DOLE mandated benefit. In this article, you will learn the correct payment of ECOLA relative to regular holidays and other wage-related benefits:

 

1. Regular Holidays:

 

Every employee covered by the holiday pay rule is entitled to the minimum wage (daily basic wage and ECOLA). This means that the employee is entitled to at least 100% of  his/her daily wage rate even if he/she did not report to work provided that he/she is present or is on leave of absence with pay on the working day immediately preceding the holiday.

 

Work performed on that day merits at least twice (200%) of the minimum wage of employee .

 

Example: 

 

If unworked: 100% of P537 (P527 basic wage  + P10 cola)

If worked: additional 100% of P537 (P527 basic wage +  P10 cola) or total of P1,074.00

 

2. On other wage- related benefits:

 

The cola shall not be included in the computation of overtime pay, premium pay, night shift differential, 13th-month pay and retirement pay.

 

See also related articles here: Minimum Wage Rate in NCR 2018, and ECOLA

 

Reference: Wage Order No. NCR-16