DOLE: No allowance for workers in 100 firms

Workers in 100 companies in Metro Manila have not been receiving a government-approved emergency cost of living allowance (ECOLA) due to recent financial difficulties experienced by employers, according to the Department of Labor and Employment (DOLE).

Labor Secretary Patricia Sto. Tomas said 100 commercial establishments have formally applied for exemption from giving out the P30 daily allowance.

The government approved the two-phase ECOLA in October. The first P15 was granted last Nov. 5 and the remaining P15 will take effect Feb. 1 next year.

The amount is non-taxable and would not be included in the workers’ basic pay.

Owners of commercial establishments in Metro Manila have until Jan. 15 to submit their applications to the National Wages and Productivity Commission (NWPC).

Sto. Tomas said that while these firms are automatically exempted from giving out the ECOLA, they are obliged to pay workers back wages in case their petitions are denied.

She added that firms can only be exempted for a period of one year.

Since the approval of the ECOLA, many companies in Metro Manila have sought exemption because of the prevailing economic slump.

The National Capital Region has accounted for 58 percent of establishments that have closed down or laid off workers in the first 10 months of the year.