Republic of the Philippines
House of Representatives

2
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@uezon City Fy eB 0 AN 2018
Ex E
SEVENTEENTH CONGRESS , rest —

Second Regular Session

House sino. 7055

Introduced by Representative EDGAR R. ERICE

EXPLANATORY NOTE

The state shall promote a just and dynamic social order that will ensure the
prosperity and independence of the nation and free the people from poverty through
policies that provide adequate social services, promote full employment, a rising standard
of living, and an improved quality of life for all.

In the past 2 years, we have witnessed remarkable growth in our economy, as
evidenced by the consistently high GDP growth rates we have been receiving. However,
this growth comes with the notion of trickle-down economics that the working class should
just have whatever is left, couple this with an ever-rising inflation rate. This puts a heavy
burden on the middle class or working-class people, through the annual cost increase of
basic necessities is magnified with the idea that they have more purchasing power due
to the growth.

The Cost of Living Allowance (COLA) sought to balance out inflation, this however
fails to improve the standard of living of our fellows, thus it is the intention of this
Representation to give back to the working class, those who made our substantial GDP
growth possible, through the standardization of the COLA to seventeen percent (17%) of
a regions minimum wage.

In view of the above mentioned, the immediate passage of this bill is earnestly sought.

District, Caloocan City


Republic of the Philippines
House of Representatives
Queen City

SEVENTEENTH CONGRESS
Second Regular Session

7055

HOUSE BILL NO.

Introduced by Representative EDGAR R. ERICE

AN ACT STANDARDIZING THE COST OF LIVING ALLOWANCE (COLA) TO
SEVENTEEN PERCENT (17%) OF MINIMUM WAGE AND EXTENDING THE SAME TO
THE GOVERNMENT SECTOR

Be it enacted by Senate and the House of Representatives of the Philippines in Congress
assembled.

SECTION 1. - “Declaration of Policy.”-The state shall promote a just and dynamic social
order that will ensure the prosperity and independence of the nation and free the people
from poverty through policies that provide adequate social services, promote full
employment, a rising standard of living, and an improved quality of life for all

SECTION 2. - “Coverage.” -All workers both from the private and public sector, whether
working as a regular, contractual or casual employee, inclusive of both Non — agriculture
and agriculture employment.

SECTION 3. — “Standardizing the Cost of Living Allowance (COLA).” -To alleviate
the ever-rising cost of basic necessities on the working class who have made the high
GDP growth possible, the COLA is hereby standardized to seventeen percent (17%) of
the regional minimum wage.


SECTION 4. - “Providing a Cost of Living Allowance (COLA) for all Government
Officials and Employees.” - Government workers, whether employed on the national or
local government units, appointive or elective, career or non-career, inclusive of those
employed under Government Owned and Controlled Corporations, are hereby included
within the coverage of the Cost of Living Allowance (COLA), this is on top existing benefits
and allowances granted for the same purpose.

SECTION 5. Funding and Appropriations. The amount necessary to carry out the
implementation of this Act shall be. Charged against the current annual General
Appropriations Act, thereafter, such sums as may be needed for its full implementation
shall be included in the annual General Appropriations Act. In the case of government-
owned and controlled corporations and financial institutions, the necessary funding shall
be taken from their respective corporate funds.

SECTION 6. Implementing rules and Regulations. Within ninety days (90) days from
the effectivity of this act, the Department of Labor and employment, Department of Budget
and Management, Department of National Defense, the Department of Interior and Local
Government, GCG, and other affected agencies, shall issue the implementing Rules and
Regulations for the immediate implementation of this Act.

SECTION 7. Separability Clause. If for any reason any section or provision of this Act,
or any portion thereof, or the application of such section, provision or portion thereof to
any person, group or circumstance is declared invalid or unconstitutional, the remaining
provisions of this Act shall not be affected by such declaration and shall remain in force
and effect.

SECTION 8. Repealing Clause. The provisions of other laws, decrees, executive orders,

rules and regulations inconsistent with this Act are hereby repealed, amended or
modified accordingly.

SECTION 9. Effectivity. This Act shall take effect fifteen (15) days after its publication in
at least two (2) national newspapers of general circulation

Approved,