As inflation continues to push the prices of food, utilities, and transportation higher, the Cost of Living Allowance (COLA) remains an important support for both employees and retirees in the Philippines. COLA is an additional payment designed to help offset the impact of rising living expenses, ensuring that workers and pensioners can keep up with day-to-day costs.
In 2025, COLA takes on a bigger role, with expectations that SSS pensioners will begin receiving a COLA payout by mid-August. For private sector employees, the allowance varies and depends on company policy as well as regional wage board directives.
COLA for SSS Pensioners
Senior citizens who rely mainly on their monthly Social Security System (SSS) pension are among the most vulnerable to inflation. To help them maintain their purchasing power, the government has scheduled a COLA release around August 10, 2025. This will be credited directly to eligible pensioners without the need for application.
The move is intended to safeguard retirees who are living on fixed incomes, ensuring that they are not left behind as the cost of essential goods continues to climb.
COLA in the Private Sector
Unlike pensions, COLA in private companies is not mandated across the board. Employers have the option to provide COLA as part of their compensation package, and its amount can vary greatly depending on the industry, business capacity, and inflation trends.
Some regional wage orders also integrate COLA into the daily minimum wage, while others separate it. For example, in Metro Manila, daily wages range from ₱658 to ₱695 in mid-2025, and in some provinces, the daily rate is as low as ₱405. In these cases, COLA may be included as part of the wage adjustment.
How COLA Helps Workers and Families
COLA provides an added cushion at a time when basic living costs are at record highs. A family of four now spends around ₱110,000 per month excluding rent, while average salaries hover at about ₱44,800. The gap between wages and actual household needs highlights why allowances such as COLA are necessary.
For overseas workers and local employees alike, COLA can mean the difference between just getting by and being able to save a little for emergencies.
How to Receive COLA
For pensioners, COLA will be automatically credited to their accounts once the release begins in August 2025. Those who do not receive it on schedule are encouraged to follow up with SSS or their local social welfare office.
For employees, eligibility depends on workplace policy and regional wage orders. Workers are advised to check their employment contracts or consult their HR departments to confirm whether COLA is part of their pay structure.
Looking Ahead
As inflation remains one of the biggest challenges for Filipino households, COLA continues to play a vital role in softening the blow. While not all workers are guaranteed to receive it, those who do benefit from an extra layer of financial support. For pensioners, the upcoming COLA release reaffirms the government’s commitment to protecting the country’s most vulnerable groups.