! 
SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Third Regular Session 
SENATE 
S.No. 2S01 
) 
) 
) 
Introduced by Senator Antonio "Sonny" F. Trillaues IV 
AN ACT 
'15 
AUG 17 
1\10 :48 
PROVIDING FOR A COST OF LIVING ALLOWANCE (COLA) FOR ALL 
EMPWYEES IN THE GOVERNMENT SECTOR AND FOR OTHER RELATED 
PURPOSES 
EXPLANATORY NOTE 
• 
In spite of the previous adjustments in the salaries of government employees over the last 
few years, their current income still fails to cope with ever increasing the costs of basic 
necessities, as reflected in the yearly increase in the consumer price index. It is high time 
that they should be granted additional assistance to help alleviate the effects of rising cost 
ofliving due to inflation in order to sustain decent living. The State should always see to 
it that its workers be should shielded at all times from the erratic economic conditions 
brought about by ever spiraling prices of basic goods and commodities in the country and 
in world market and other related mctors. 
In order to enable even lowest paid government workers to cope with these 
contingencies, it is high time the State considers putting into place special economic 
assistance in the form ofa Cost of Living Allowance (COLA) for government employees 
on top of the other mandatory allowances they are currently receiving . 
• 
This representation believes that this piece of legilfation could be the best alternative in 
case that the national government is not yet ready at this time to implement another round 
of adjustments in the prevailing salary rates of state workers, as provided in the proposed 
amended "Compensation and Position Classitication Act" or Salary Standardization Law 
No.4 (SSL 4) also being proposed by the undersigned. 
Most importantly, this legislation could be the best compromise to fast-track the 
implementation of a long overdue increase in the take home pay of government workers. 
Thus, the immediate passage of this bill is earnestly sought 
A~'10~NY~A~IV 
Se~l!~ TI 
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SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Third Regular Session 
SENATE 
S.No. 2901 
) 
) 
) 
Introdnced by Senator Antonio "Sonny" F. Trillanes IV 
AN ACT 
'15 
AUG 17 Al0 :48 
PROVIDING FOR A COST OF LIVING ALWWANCE (COLA) FOR ALL 
EMPLOYEES IN THE GOVERNMENT SECTOR AND FOR OTHER RELATED 
PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Republic of 
the Philippines ill Congress assembled: 
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SECTION I. Declaration of Policy. -It is hereby declared to be the policy of the 
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State to promote, nurt:uTe and protect the interest of the workers in the public sector for 
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them to endure the economic challenges brought about by the undeniable upsurge in the 
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cost of living by providing just and reasonable compensation to every worker in the 
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government workforce that corresponds to their share of effort to achieve and sustain 
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productivity in the agencies they serve, thus, allowing them to have decent personal 
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and/or family life and to be able to meet the basic needs of their families for shelter, daily 
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sustenance, education and medical attendance. 
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SEC. 2. Coverage. -
All civilian government employees whether employed by 
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the national or local governments, appointive or elective, and whether occupying regular, 
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contractual or casual positions, whose positions are covered by Republic Act 6758, 
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otherwise known as the "Compensation and Position Classification Act of 1989," as 
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amended, as well as military and uniformed personnel, shall be covered by this Act. 
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SEC. 3. Cost of Living Allowance (COLA) for Government Employees. - In 
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order to alleviate the impact the ever-increasing costs of basic necessities on government 
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workers, there is hereby granted a special economic assistance for all covered 
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government employees to be known as the Cost of Living Allowance (COLA) for 
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government workers in the amount of Five Thousand Pesos (P5,OOO.OO), to be 
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implemented across-the-board, on top of the existing Personnel Economic Relief 
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Allowance (PERA) previously granted for the same purpose. 
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SEC. 4. Fnnding. - To effectively carry-out the grant of the COLA provided 
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herein for the employees of the national government agencies, the amount necessary for 
26 • this purpose shall be charged against the annual General Appropriations Act, particularly 
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the Miscellaneous Personal Benefit Fund (MPBF) or any savings realized by the 
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Government from the current GAA. 
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In the case of government-owned and controlled corporations and financial 
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institutions, the necessary amount shall be sourced fully from their respective corporate 
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funds, and in the case oflocal government units (LGUs), from their respective local funds 
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or the LGU's share in their Internal Revenue Allotments (IRA). 
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SEC. 5. Implementing Rules and Regulations. - Within a period of thirty (30) 
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days from the enactment of this Act, the Department of Budget and Management (DBM), 
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in consultation with the Civil Service Commission, the Department of Defense and the 
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Department of Interior and Local Government and the Governance Commission on 
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Government Owned And Controlled Corporations (GCG) and other affected agencies, 
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shall issue the Implementing Rules and Regulations for the immediate implementation of 
7 ., this Act. 
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SEC. 6. Effectivity. - This Act shall take effect immediately upon its approval 
and fIfteen (J 5) days after its publication in the OffiCial Gazette or least two (2) national 
newspapers of general circulation in the country. 
Approved, 
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