REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House Bill No. 1499

Introduced by MAGDALO Party-List Representative
HON. MANUEL DG. CABOCHAN UI

EXPLANATORY NOTE

In spite of the previous adjustments in the salaries of government employees through
Executive Order No. 201, their current income still fails to cope with the ever increasing
costs of basic necessities, as reflected in the yearly increase in the consumer price index.

Therefore, it is high time that government employees be granted additional assistance to help
alleviate the effects of rising cost of living due to inflation and in order for them to sustain a
decent living. The State should always see to it that its workers are 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 a special economic assistance in the form of
a Cost of Living Allowance (COLA) for government emplovees on top of the other
mandatory allowances they are currently receiving

In view of the foregoing, the immediate approval of this bill is earnestly sought

CHAN TIT

Pilipino Party-List


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REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House Bill No. 1499

Introduced by MAGDALO Party-List Representative
HON. MANUEL DG. CABOCHAN IIL

AN ACT
PROVIDING FOR A COST OF LIVING ALLOWANCE (COLA) FOR ALL
OFFICIALS AND 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 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.

2. Coverage. - All civilian government officials and employees whether
employed by the national or local government units, appointive or elective, career or non-
career, including those employed under Government Owned and Controlled Corporations
(GOCCs) and other Government Financial Institutions (GFls), whose positions are covered
by Republic Act No, 6758, otherwise known as the “Compensation and Position
Classification Act of 1989” as amended, as well as all military and uniformed personne! of
the government, shall be covered by this Act.

on government workers, there is hereby granted a special economic assistance for all cove
government officials and employees to be known as the Cost of Living Allowance (COL
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
for the officials and employees of the nationai governm
for this purpose shall be chai
particular!
Government from the current GAA

rant of the COLA provided hei
ent agencies, the amount nece
j against the annual General Appropriations Act (GAA).

in

the Miscellaneous Persona efit Fund (MPBF) or any savings realized by the



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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).

SEC. 5. Tax Exemption on COLA. — No tax of any kind shall be levied on the Cost
of Living Allowance (COLA) herein granted to government officials and employees as well
as military and uniformed personnel of the government.

SEC. 6. 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 (CSC), the Department of National Defense
(DND) and the Department of Interior and Local Government (DILG) 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. 7. Effect This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in any two (2) newspapers of general circulation

Approved,