---
title: How to Set-Up ECOLA on Sprout Payroll
---

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# How to Set-Up ECOLA on Sprout Payroll

The Emergency Cost of Living Allowance (ECOLA) is a government-mandated benefit given to Minimum Wage Earners (MWE) in order to help them cope with the ever-changing price of commodities such as rent, food, clothing, and gas. This has been set to PHP 10.00 per day by the Department of Labor and Employment (DOLE) and though this can still be adjusted by the company, it must not be less than that. You're probably wondering how this would be set-up on Sprout Payroll. Wait no more, we've got you covered!

 

Note: ECOLA is now reflected as Daily Allowance (Non Taxable) 

 

**For Daily/Hourly Paid Employees**

 

![](https://guide.sprout.ph/hs-fs/hubfs/image-png-Jul-03-2025-01-53-07-7588-AM.png?width=697&height=172&name=image-png-Jul-03-2025-01-53-07-7588-AM.png)

 

For employees who are either paid daily or hourly, the set-up would be as plain as day. Since they are given P10.00 ECOLA per day worked, simply put the daily ECOLA to be received by the employee in the *Salary Details* section of their employee information. 

 

**For Monthly/Semi-Monthly Paid Employees**

 

 ![](https://guide.sprout.ph/hs-fs/hubfs/image-png-Jul-03-2025-01-53-40-6293-AM.png?width=713&height=181&name=image-png-Jul-03-2025-01-53-40-6293-AM.png)

 

 

As for employees who are either paid monthly or semi-monthly, the set-up will require a little brain exercise. This is because you would have to compute first the employee's ECOLA for the whole month before setting it up on their employee information. Now how will we do this? You would have to multiply the ECOLA with the rate factor, and then divide the product to the number of months in a year. Here's a sample computation for you:

 

10 (ECOLA) x 261 (Rate Factor or Work Days Per Year) = 2,610

2,2610 / 12 (months in a year) = **217.50**

 

Once you have computed for the employee's monthly ECOLA, you may now input this into the *Salary Details* section of their employee information and click *Save* at the bottom of the page to ensure that all changes will not be discarded.

 

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