Ched Rick Gatchalian

Pedestrians walk at a crossing in Makati City on July 12, 2022. Mark Demayo, ABS-CBN News

Article (news)

14th month pay in private sector bill filed at House

Agatha Gregorio

ABS-CBN News

MANILA — A House bill making 14th month pay mandatory in the private sector was filed on Monday.Under House Bill 3808 filed by Trade Union Congress of the Philippines (TUCP) party-list Rep. Raymond Mendoza, 13th month pay will be given to private workers by June 24th while 14th month pay will be distributed by December 24th annually, “provided that the frequency of payment of this monetary benefit may be the subject of agreement between employer and employee or any recognized/collective bargaining agent of employees.”“Today, Filipino workers and their families continue to suffer from starvation poverty wages with most, if not all, regional minimum wages which fall below the government-set poverty threshold and no way near the family living wage as well as persistent underemployment reflected in the fact that millions who have a job are still seeking another job or additional hours of work,” the explanatory note reads.<div><a class="fr-green fr-strong" href="https://www.abs-cbn.com/video/business/07/03/19/senate-may-tackle-proposed-14th-month-pay-bill">Senate may tackle proposed 14th month pay bill</a></div>The 14th month pay will be equivalent to at least 1/12 of the employee’s total basic salary, according to the bill.But some employers are exempted, including those who are “distressed” or are incurring substantial losses, as well as non-profit institutions and organizations whose income consistently declined by over 40% of their normal income for the last two years.The exemption is subject to authorization by the Department of Labor and Employment (DOLE).Employers of individuals paid purely on commission, boundary or task basis are also not required to give 14th month pay under the bill.<div><a class="fr-green fr-strong" href="https://www.abs-cbn.com/news/08/11/18/labor-department-welcomes-bill-on-conditional-14th-month-pay">Labor department welcomes bill on conditional 14th month pay</a></div>“These exemptions prove that we heed the concerns of employers, especially those who are struggling. But let us be clear: when workers receive more and better benefits, they are not only happier but more motivated and productive at work. And when productivity rises, so does profitability. Working families become more comfortable as businesses and the economy grow stronger,” Mendoza said in a statement.A bill gets read for three times at the House. If passed, it can move to the upper chamber, or if Senate passed it already, the bill goes straight to the President for the last signature.Senate Minority Leader Vicente “Tito” Sotto III also filed a bill for 14th month pay in the private sector with similar exemptions.

14th month pay will be equivalent to at least 1/12 of the employee’s total basic salary, according to the bill.

14th month pay will be equivalent to at least 1/12 of the employee’s total basic salary, according to the bill.