REPUBLIC OF THE PHILIPPINES
House of Representatives
Quezon City

16 Congress
34 Regular Session

6409

HOUSE BILL NO. __

Introduced by Congressman Alfredo D. Vargas III

EXPLANATORY NOTE

The high and ever increasing costs of basic necessities has always been a problem for
our people. Present incomes fail to cope with the accelerating prices, as reflected in the annual
increase in the consumer price index.

Government employees are especially vulnerable to this scenario. This is in spite of the
regular adjustments in salaries of government employees in the last decade.

Our government employees, those who toil in the name of public service, need to be
granted additional assistance for them to cope with the rising cost of living. The State has an
obligation to ensure that these workers can afford decent lives. Government workers must be
given a helping hand by the State to deal with the spiraling prices of basic commodities and
goods.

For our public sector employees, we need to put in place a special economic assistance
in the form of a Cost of Living Allowance (COLA) in addition to the other mandatory allowances
they are receiving at present. Hence, this bill.

This piece of legislation will enable even the lowest paid government workers to cope
with the unpredictable world market. It will help our public sector employees meet their
financial obligations more effectively.

In view of the foregoing, passage of this bill is earnestly sought.

REDO D. VARGAS III

27 JAN 2016.)
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REPUBLIC OF THE PHILIPPINES
House of Representatives
Quezon City

16" Congress
34 Regular Session

HOUSE BILL NO. 6403

Introduced by Congressman Alfredo D. Vargas III

AN ACT
PROVIDING FOR A COST OF LIVING ALLOWANCE (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 Philippines in
Congress assembled:

SECTION 1. Declaration of Policy. - it is hereby declared to be the policy of the State
to promote, nurture and protect the interest of the workers in the public sector for them to
endure the economic challenges brought by the undeniable upsurge in the cost of living by
providing just and reasonable compensation to every worker in the government workforce
that corresponds to their share of effort to achieve and sustain productivity in the agencies
they serve, thus, allowing them to have decent personal and/or family life and to be able to
meet the basic needs of their families for shelter, daily sustenance, education and medical
attendance.

SEC. 2. Coverage. - All civilian government employees whether employed by the
national or local governments, appointive or elective, and whether occupying a regular,
contractual or casual position, whose positions are covered by Republic Act 6758,
otherwise known as the “Compensation and Position Classification Act of 1989” as
amended, as well as military and uniformed personnel, shall be covered by this Act.

SEC. 3. Cost of Living Allowance (COLA) for Government Employees. - In order to
alleviate the impact of the ever-increasing costs of basic necessities on government
workers, there is hereby granted a special economic assistance for all covered government
employees to be known as the Cost of Living Allowance for government workers in the
amount of Five Thousand Pesos (Php5,000.00) to be implemented across-the-board, on top
of the existing Personnel Economic Relief Allowance (PERA) previously granted for the
same purpose.

SEC. 4. Funding. - To effectively carry-out the grant of the COLA provided herein for
the employees of the national government agencies, the amount necessary for this purpose


shall be charged against the annual General Appropriations Act, particularly the
Miscellaneous Personal Benefit Fund (MPBF) or any savings realized by the government for
the current GAA.

In the case of government-owned and controlled corporation and financial
institutions, the necessary amount shall be sourced fully from their respective corporate
funds, and in the case of local government units (LGUs), from their respective local funds or
the LGU’s share in their Internal Revenue Allotments (IRA).

SEC. 5. Implementing Rules and Regulations. ~ Within a period of thirty (30) days
from the enactment of this Act, the Department of Budget and Management (DBM) in
consultation with the Civil Service Commission, the Department of National Defense and
the Department of the Interior and Local Government and the Governance Commission on
Government Owned and Controlled Corporations (GCC) and other affected agencies, shall
issue the Implementing Rules and Regulations for the immediate implementation of this
Act.

SEC. 6, Effectivity. ~ This Act shall taker effect immediately upon its approval (15)
days after its publication in the Official Gazette or at least two (2) newspapers of general
circulation.

Approved,