Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SIXTEENTH CONGRESS
Second Regular Session

House Bill No.__6113

Introduced by Magdalo Party-List Representatives
Hon. Gary C. Alejano and Hon. Francisco Ashley L. Acedillo

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
of living 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 factors.

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 of a Cost of Living Allowance (COLA) for government employees
on top of the other mandatory allowances they are currently receiving.

This piece of legislation could be the best alternative in case 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 Classification 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.

HON. PRANCISCO ASHLEY L. ACEDILLO



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SIXTEENTH CONGRESS
Second Regular Session

House Bill No. 6113

Introduced by Magdalo Party-List Representatives
Hon. Gary C. Alejano and Hon. Francisco Ashley L. Acedillo

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 Republic 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 about 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 regular,
contractual or casual positions, 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 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 (COLA) for
government workers in the amount of Five Thousand Pesos (P5,000.00), 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 from the current GAA.

In the case of government-owned and controlled corporations 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).


SSecarnomsons

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 Defense and the
Department of Interior and Local Government and the Governance Commission on
Government Owned And Controlled Corporations (GCG) and other affected agencies,
shall issue the Implementing Rules and Regulations for the immediate implementation of
this Act.

SEC, 6, Effeetivity. - This Act shall take effect immediately upon its approval

and fifteen (15) days after its publication in the Official Gazette or least two (2) national
newspapers of general circulation in the country.

Approved,