RTWPB-7 to decide soon on whether P13 COLA will be added in basic pay

CEBU, Philippines - The Regional Tripartite Wages and Productivity Board-7 has concluded its public hearing and will decide soon whether or not the P13 cost of living allowance will be made part of the basic salary.

The public hearing yesterday was attended by representatives of all concerned sectors including Metaphil employees' union president Melchor Atuban who said that their P13 COLA was already integrated in their basic pay.

However, RTWPB-7 labor sector representative Ernesto Carreon said that incorporating COLA to the base pay may have advantages but it also have disadvantages.

Carreon explained that if COLA is incorporated in the basic salary it will be subjected to tax, especially if the base pay is above the P327 minimum wage.

Phillip Tan, employer sector representative, also warned the management of private companies that if they are thinking of integrating the COLA to the basic pay, they should make sure that it does more good than harm to the workers as basic pay above the minimum is subject to income tax.

Exequiel Sarcauga, RTWPB 7 chairman, said like in Bohol where they had been to the other day, Cebu's public hearing also yielded "opposing views," which they will consider in their decision-making in the coming days.

"We will try to come up with decision that's best for region 7," he said.

The board also announced yesterday that it will still accept position papers until Friday, and will deliberate next week.

Wage order no. 18 provides the P13 COLA effective March 21 this year. Six months since the approval, the board has to decide whether the said amount should be included in the basic pay or stay as COLA.—  (FREEMAN)