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
Reference: Wage Order No. NCR-16