Sen. Vicente “Tito” Sotto III refiled the 14th month bill in the private sector.
14TH MONTH PAY – Senate Minority Leader Vicente “Tito” Sotto III has refiled the bill at the House to grant employees of the private sector this pay.
Over the weekend, Senate Minority Leader Vicente “Tito” Sotto III expressed that the 13th month pay is no longer sufficient to cope with the increasing costs of essential goods and services.
In order to address this problem, he initiated an argument about how helpful the granting of 14th month pay would be to the employees of the private sector. It would provide them with the much-needed support to keep up with the rising costs of basic and essential goods.
“After almost five decades, 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,” he said.
To recall, the 13th month pay was mandated by Presidential Decree 851 in the late 1970s. This mandate entitles the employees one-twelfth of their annual basic salary. In short, this is their additional pay worth a month of their salary.
The Department of Labor and Employment (DOLE) has required employers to give out the 13th month pay no later than December 24.
Under House Bill 3808 filed by Trade Union Congress of the Philippines (TUCP) party-list Rep. Raymond Mendoza, it has been proposed that the 13th month pay should be given on June 14, while the 14th month pay release is set at December 24. The bill proposes to give employees one-twelfth of their yearly basic salary. This means that an employee will be receiving two extra months of their monthly salary in a year.
The explanatory note said:
“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.”
Who is covered by the bill? All non-government rank-and-file employees, domestic workers covered by the Kasambahay Law, and others who are already entitled to the 13th month pay.
Certain employers are also exempted. These include distressed companies suffering heavy losses, non-profit institutions experiencing income drops of over 40%, government agencies, employers who already grant a 14th month pay or higher, as well as those whose employees are compensated purely through commission, boundary, or task-based arrangements.
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