Title
Integration of COLAs into Minimum Wages
Law
Executive Order No. 178
Decision Date
Jun 1, 1987
Executive Order No. 178, issued by President Corazon C. Aquino, mandates the integration of cost-of-living allowances (COLAs) into the basic wage of all covered workers in the Philippines, with different integration dates for establishments of varying sizes and paid-up capital.
A

Q&A (EXECUTIVE ORDER NO. 178)

The main purpose is to increase the statutory daily minimum wages by integrating the cost-of-living allowances (COLAs) under certain Wage Orders into the basic pay of all covered workers.

COLAs under Wage Orders Nos. 1, 2, 3, 5, and 6 are integrated into the basic pay.

COLAs under Wage Orders Nos. 1, 2, and 3 are integrated effective May 1, 1987.

COLAs under Wage Orders Nos. 5 and 6 are integrated effective October 1, 1987.

Yes. For such establishments, COLAs under Wage Orders Nos. 1 and 2 are integrated effective May 1, 1987; COLA under Wage Order No. 3 effective October 1, 1987; and COLAs under Wage Orders Nos. 5 and 6 effective January 1, 1988.

The Secretary of Labor and Employment, as Chairman of the National Wages Council, is responsible for promulgating the necessary rules and regulations.

They are repealed or modified accordingly to conform with this Executive Order.

The Executive Order took effect on May 1, 1987.

President Corazon C. Aquino signed the Executive Order, and it was attested by Executive Secretary Joker P. Arroyo.

Integrating COLAs into the basic pay ensures that the minimum wage reflects the actual cost of living, providing workers with better wage security and a more stable purchasing power.


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