Senate Minority Leader Vicente “Tito” Sotto III has refiled a bill seeking to require private companies to provide workers with a 14th-month pay, a move he said would help families cope with rising living expenses and educational costs.
The proposal builds on the existing 13th-month pay law under Presidential Decree No. 851, enacted in 1976. “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,” Sotto said.
Under the bill, the 13th-month pay would be released by June 14 to assist parents in preparing for school-related expenses, while the 14th-month pay must be given no later than December 24 to help families cover holiday and year-end spending. The additional pay would amount to no less than one-twelfth of an employee’s total basic salary earned within the calendar year.
The measure covers all non-government rank-and-file employees, domestic workers under the Kasambahay Law, and others already entitled to a 13th-month pay, provided they have rendered at least one month of service in the year.
Employers facing financial distress, non-profit institutions experiencing major revenue losses, and companies already providing equivalent benefits would be exempted. Sotto emphasized that these exemptions aim to strike a balance: “The bill has exemptions for qualified employers so as not to burden struggling businesses, which are equally important for our economy.”
If passed, the measure could give workers a much-needed financial cushion at critical times of the year, while ensuring businesses are not weighed down beyond their means.
