Integration of COLA, other benefits into basic pay

Is integration valid? The integration of monetary benefits into the basic pay of workers is not a new method of increasing the minimum wage. It is valid.

Under Section 1 of Wage Order No. NCR-17 which took effect on June 03, 2012, the following illustration is given.

The cost-of-living allowance (COLA) of P22.00 per day under Wage Order No. NCR-16 was ordered integrated into the basic pay upon its effectivity.

Under Section 1(c) of Wage Order No. NCR-18 which took effect on October 4, 2013, also ordered the integration of the P15.00 of the existing P30.00 COLA per day under said Wage Order No. NCR-17 into the basic wage making the new basic wage of covered workers, P451.00 (New Basic Wage of P436.00 plus P15.00 COLA integrated as of January 1, 2014) and the new minimum wage rate of covered workers, P466.00 (Basic Wage after integration of P451.00 plus COLA of P15.00) effective January 1, 2014.

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