Bello Says Companies “In Distress” May Be Exempted From 13th Month Pay
13TH MONTH PAY – To compensate for the effects of COVID-19, companies in distress may be exempted from giving a 13th month pay.
Labor Secretary Silvestre Bello III said that micro, small, and medium enterprises (MSMEs) struggling amid the pandemic may not be required to provide employees with a mandatory 13th-month pay. Furthermore, Bello emphasized that the exemption is already provided in the law.
“Under the law, kelangan bayaran ang 13th month pay. Ang exemption diyan is kapag ang company is in distress“, he said. Moreover, Bello noted that the majority of the companies in distress would likely be from MSMEs. But, Bello also asserted that these companies need to provide evidence to the government that they lack the capacity to provide the 13th-month pay.
Due to the coronavirus outbreak in the Philippines, millions of Filipinos have lost their sources of income. Several industries have also struggled to bounce back even with quarantine restrictions being lowered.
However, earlier in the year, some companies have already started giving their employees the 13th-month pay in advance to help them cope with the pandemic.
READ: Firms Praised For Advancing Salaries, 13th Month Pay Amid Quarantine
Meanwhile, Bello stated that the Labor Department would release an advisory soon regarding what companies can be deemed as “in distress”. However, the Labor Secretary failed to mention a timeline regarding the announcements.
Whether they are in distress or not ay magpapalabas kami ng advisory tungkol diyan. Yan ang pag-uusapan namin, gawan natin ng paraan para maipaliwanag natin kung sino yung mga kumpanya na considered to be in distress
What do you think about this issue? Leave a comment below!
Thanks for reading. We aim to provide our readers with the freshest and most in-demand content. Come back next time for the latest news here on Philnews.
Like this article? READ ALSO: Raffy Tulfo, Cheryl Cosim Reacts To Korina & Ted’s TV5 Transfer
