WHEREAS, the National Tripartite Conference, held on April 10-11, 1987, has agreed in principle on the integration of existing cost-of living-allowances (COLAs) into the basic pay, leaving to the President of the Philippines the decision on the manner and schedule of integration;

NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, do hereby order:

SECTION 1. The cost-of-living allowances mandated under existing Wage Orders shall be integrated into the basic wage of all covered workers based on the following schedule:

1. COLAs under Wage Orders Nos. 1, 2 and 3, effective May 1, 1987
   
   
2. COLAs under Wage Order Nos. 5 and 6, effective October 1, 1987
   

For establishments with less than 30 employees and paid-up capital of P500.00 or less:

a)	COLAs under Wage Order Nos. 1 and 2, effective May 1, 1987
b)	COLA under Wage Order No. 3, effective October 1, 1987
c)	COLAs under Wage Orders No. 5 and 6, effective January 1, 1988

SECTION 2. The Secretary of Labor and Employment, as Chairman of the National Wages Council, shall promulgate the necessary rules and regulations to implement this Executive Order.

SECTION 3. All laws, orders, issuances, rules and regulations or parts thereof inconsistent with this Executive Order are hereby repealed or modified accordingly.

SECTION 4. This Executive Order shall take effect on May 1, 1987.

Done in the City of Manila, this 1st day of June, in the year of Our Lord, nineteen hundred and eighty-seven


By the President:

(Sgd.) JOKER P. ARROYO
Executive Secretary