Even big companies seek exemption from ECOLA

Claiming bankruptcy, many large commercial establishments in Metro Manila are seeking exemption from giving additional pay to their workers.

This, as all commercial firms in the National Capital Region (NCR) start paying today half of the mandated P30 daily emergency cost-of-living allowance (ECOLA).

The Regional Tripartite Wages and Productivity Board (RTWPB) in Metro Manila reported that this early, about 15 firms in the region have already filed applications for exemption from paying the non-wage benefit.

A RTWPB official said applications for exemption started coming in a week after the wage board ordered the granting of ECOLA to workers receiving not more than P290 in daily pay.

Of the total applications for exemptions pending before the wage board, almost half were filed by large companies claiming to be suffering from financial losses.

"Almost half of the applications we received seeking the exemption came from large establishments," said the RTWPB official, who spoke on condition of anonymity and declined to identify the companies that filed for exemptions since it would create unnecessary unrest among workers.

According to the official, companies that filed applications for exemption are automatically spared from providing the mandated allowance until the board comes out with a decision.

But if the applications for exemptions were disapproved, the official said, firms will have to pay the backwages with interest of one percent per month.

However, commercial firms given exemptions have only a year to defer payment of wage increases.

Last year about 842 commercial firms filed applications for exemption from paying the P26.50 adjustment in daily wage but only 542 were allowed to defer payment.

Companies that may seek exemption include distressed establishments, those with potential losses and firms employing less than 10 workers.

Those seeking exemption are required to file audited financial statements, annual income tax returns for the last two taxable periods and other pertinent documents to support their applications for exemption. – Mayen Jaymalin