Bill seeks mandatory 14th month pay for workers

A MEASURE seeking to mandate a 14th month pay for all private sector workers has been filed in the Senate amid the rising costs of basic goods and services.

“The needs and cost of living of every Filipino worker have drastically changed, thus it is high time that employees in the private sector receive their 14th month pay,” Senator Vicente C. Sotto III said in a statement on Sunday.

Under Senate Bill No. 193, the 14th Month Pay bill, Mr. Sotto proposed that the minimum amount of the 14th month pay should not be less than one-twelfth of the total basic salary earned by the employee within the calendar year. He had filed a similar bill during the 18th Congress.

It covers all non-government rank-and-file employees, workers under Republic Act No. 10361, the Kasambahay Law, and others already entitled to a 13th month pay, provided they have worked for at least one month during the calendar year.

Presidential Decree No. 851 of 1976 already requires employers to pay workers a 13th month pay.

The bill also proposed the release of the 13th month of workers should not be later than June 14, while their 14th month pay should be received not later than Dec. 24 of every year.

The proposed payment schedule is intended to help parents in shouldering educational expenses and the incoming year-end holiday celebrations, Mr. Sotto said.

He noted that the frequency of payment of the benefit should be the subject of agreement between employer and employee or any recognized collective bargaining agent of employees.

Meanwhile, the bill exempts distressed employers, the government, employers already providing a 14th month pay, or its equivalent.

“The bill has exemptions for qualified employers so as not to burden struggling businesses as they are equally important for our economy,” he added. — Adrian H. Halili