Granting Additional Cost-Of-Living Allowance (COLA) to Government Officials and Employees

Case Overview and Summary

Summary of Executive Order No. 985

Granting Additional Cost-of-Living Allowance (COLA) to Government Officials and Employees

- Rationale:
• To enable government employees to cope with recent price increases and in light of recently approved minimum wage increases in the private sector. (Whereas clauses)
• It is the policy of the government to help augment government personnel income in times of economic difficulties. (Whereas clause)

- Coverage:
• Each and every official and employee of the National Government whether permanent, temporary, emergency, contractual or casual. (Section 1)

- COLA Rates:
• P150.00 per month for those receiving a basic salary rate of P1,500.00 per month and below or P6.85 COLA per day but not to exceed P150 per month for those receiving a basic wage rate of P50.00 per day and below. (Section 1.1)
• P100 per month for those receiving a basic salary rate of P1,501 per month or above or P4.55 COLA per day but not to exceed P100 per month for those receiving a basic wage date of more than P50.00 per day. (Section 1.2)

- Local Government Units:
• Local government units may authorize the additional cost-of-living allowance under this Executive Order to their officials and employees, subject to the limits of their financial capabilities and under such conditions as may be determined by the Joint Commission on Local Government Personnel Administration. (Section 2)

- Government-Owned and/or Controlled Corporations:
• Government-Owned and/or Controlled Corporations may authorize the additional cost-of-living allowance under this Executive Order to their officials and employees, subject to the existing available resources in the corporations for the purpose, and such other conditions as may be determined by the Office of Budget and Management. (Section 3)

- Funding Source for National Government Agencies:
• The amount needed to implement this Order with respect to national government agencies shall be charged to (a) salary lapses, and other personnel services savings of the ministry/bureau/office/agency concerned as a first priority funding source, and (b) to the lump-sum appropriation for salary increases, incorporated in the budgets of national government agencies/offices. (Section 4)
• Any deficiency shall be charged against the Salary Adjustment Fund authorized in the CY 1984 General Appropriations Act and additional income to be generate from the new revenue measures. (Section 4)

- Effectivity Date:
• Payment of the additional cost-of-living allowance herein directed shall be effective on June 16, 1984. (Section 5)

- Implementing Rules and Regulations:
• The rules and regulations necessary to implement this Order shall be issued by the Minister of the Budget for the national government agencies and government-owned and controlled corporations; and by the Joint Commission on Local Government Personnel Administration for local government units. (Section 6)