Providing a Daily Emergency Cost of Living Allowance

Providing a Daily Emergency Cost of Living Allowance

Wage Order No. NCR-10Jun 23, 2004Other Rules and Procedures7 min read

Wage Order No. NCR-10, issued on June 23, 2004, mandates a daily Emergency Cost of Living Allowance (ECOLA) of P20 for private sector workers in the National Capital Region earning between P250 and P290 per day. This order aims to alleviate the financial struggles of workers while maintaining business competitiveness. Certain workers, such as domestic helpers and those employed in micro enterprises, are excluded from this provision. Additionally, private educational institutions must comply with the allowance starting School Year 2004-2005, with specific rules regarding exemptions for distressed establishments and compliance deadlines outlined. Employers failing to comply may face penalties as specified in existing labor laws.

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Law Information

Reference Number: Wage Order No. NCR-10
Date Enacted: Jun 23, 2004
Category: Other Rules and Procedures
Subcategory: Labor and Employment
Jurisdiction: Philippines
Enacting Body: Congress of the Philippines

June 23, 2004

WAGE ORDER NO. NCR-10

PROVIDING A DAILY EMERGENCY COST OF LIVING ALLOWANCE

WHEREAS, the Regional Tripartite Wages and Productivity Board — National Capital Region, has its mandate to periodically assess the wage levels, conduct studies and determine and fix minimum wage rates applicable in the region or industry; NCoPmc

WHEREAS, acting upon the petitions filed by organized labor and as a result of its studies consultations and deliberations, this Board finds a need to provide a daily emergency cost of living allowance (ECOLA) to alleviate the plight of the workers and employees in the private sector without impairing the viability and competitiveness of business and industry;

NOW THEREFORE, by virtue of the power and authority vested under Republic Act No. 6727, otherwise known as the Wage Rationalization Act, the Regional Tripartite Wages and Productivity Board — National Capital Region hereby issues this Wage Order:

SECTION 1. Upon the effectivity of this Wage Order, all private sector workers and employees in the National Capital Region receiving daily wage rates of TWO HUNDRED FIFTY PESOS (P250.00) up to TWO HUNDRED NINETY PESOS (P290.00) shall receive an Emergency Cost of Living Allowance (ECOLA)in the amount of TWENTY PESOS (P20.00) per day.

SECTION 2. The total compensation of workers earning the prevailing minimum wage rates in the National Capital Region shall be as follows:

INDUSTRY/SECTOR	BASIC WAGE	ECOLA	ECOLA	TOTAL
			under WO NCR-09	under WO NCR-10

Non-Agriculture	P250	P30	P20	P300
Agriculture
	Plantation	P213	P30	P20	P263
	Non-Plantation	P213	P30	P20	P263

SECTION 3. The provisions of this Order shall not cover household or domestic helpers and persons in the personal service of another, including family drivers and workers of registered Barangay Micro Business Enterprises (BMBEs) who will be hired after the effectivity of this Wage Order. BenchStat

SECTION 4. In the case of private educational institutions, the share of covered workers and employees in the increase in tuition fees for School Year 2003-2004 shall be considered as compliance with the emergency cost of living allowance prescribed herein. However, payment of any shortfall in the allowance set forth herein shall be covered starting School Year 2004-2005.

Private educational institutions which did not increase their tuition fees for the School Year 2003-2004, may defer compliance with the provisions of this Wage Order until School Year 2004-2005.

In any case, all private educational institutions shall implement the allowance prescribed herein starting School Year 2004-2005.

SECTION 5. In the case of workers covered by contracts for works and services, the prescribed allowance set forth herein shall be borne by the principal and the contract previously forged between the principal and the contractor is deemed amended accordingly. In the event that the principal fails to pay the prescribed allowance, the contractor shall be jointly and severally liable with the principal.

SECTION 6. All workers paid by result, including those who are paid on piecework, "takay", "pakyaw" or task basis, shall be entitled to receive the prescribed allowance per eight (8) hours work a day, or a proportion thereof for working less than eight (8) hours.

SECTION 7. Wages of apprentices and learners shall in no case be less than seventy-five (75%) of the allowance as prescribed in this Order. All handicapped employees shall receive the full amount of emergency cost of living allowance prescribed in this Order.

SECTION 8. Upon application with and as determined by the Board, based on documentation and other requirements in accordance with the applicable rules and regulations issued by the Commission, the following may be exempted from the applicability of this Order:

1. Distressed establishments;

2. Establishments facing potential losses;

3. Retail/Service establishments employing not more than ten (10) workers; and

4. Establishments whose total assets including those arising from loans but exclusive of the land on which the particular business entity's office, plant and equipment are situated, are not more than P3 million.

SECTION 9. All applications for exemption from compliance with this Order shall be filed within seventy-five (75) days from the date of publication of the Rules Implementing this Order, with complete supporting documents as specified in the Rules. Failure to submit the required supporting documents within the prescribed period will be tantamount to dismissal of the application for exemption. The Board has the discretion to grant full or partial exemption but in no case shall it exceed one (1) year from the effectivity of this Order.

SECTION 10. Whenever an application for exemption has been duly filed with the Board, action on any complaint for alleged non-compliance with this Wage Order shall be deferred pending its resolution. EDIHSC

SECTION 11. In the event that the application for exemption is not granted, the employees of the applicant firm shall receive the appropriate compensation due them as provided for in this Order, together with the payment of interest amounting to one percent (1%) per month retroactive to the effectivity of this Order.

SECTION 12. Wage increases/allowances granted by an employer in an organized establishment within three (3) months prior to the effectivity of this Order shall be credited as compliance with the prescribed allowance set forth herein, provided an agreement to this effect has been forged between the parties or a collective bargaining agreement provision allowing creditability exists. In the absence of such an agreement or provision in the CBA, any increase granted by the employer shall not be credited as compliance with the increase prescribed in this Order.

In unorganized establishments, wage increases/allowances granted by the employer within three (3) months prior to the effectivity of this Order shall be credited as compliance therewith.

In case the increases given are less than the prescribed adjustment, the employer shall pay the difference. Such increases shall not include anniversary increases, merit wage increases and those resulting from the regularization or promotion of employees.

SECTION 13. Where the application of the emergency cost of living allowance prescribed in this Order results in distortions in the wage structure within the establishment, the distortion as corrected shall be paid as ECOLA in accordance with the procedure provided for under Article 124 of the Labor Code of the Philippines, as amended.

SECTION 14. Any employer who refuses or fails to pay the prescribed minimum wage rate and emergency cost of living allowance provided under this Wage Order shall be subject to the penalties specified under R.A. 6727, as amended by R.A. 8188.

SECTION 15. The Regional Tripartite Wages and Productivity Board — National Capital Region shall prepare the necessary rules and regulations to implement this Order.

SECTION 16. If any provision or part of this Wage Order is declared unconstitutional or illegal, the other provisions or parts thereof shall remain valid. Nothing in this Order shall be construed to reduce any existing wage rate, allowance or other benefit under existing laws, decrees, issuance, and executive orders or under any contract or agreement between workers and employers.

SECTION 17. This Order shall take effect fifteen (15) days after its publication in a newspaper of general circulation.

Approved.

Manila, Philippines, 23 June 2004.

Dissenting

(SGD.) DANIEL R. ANG

Labor Representative