MANILA — Acting Labor and Employment Secretary Danilo Cruz said the P22 cost of living allowance (COLA) granted under the new approved wage order 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.
He said such allowance 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.
Upon effectivity on May 26, 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. (PNA)