DOLE says no to 14th month pay

CEBU, Philippines - The government is against a bill of Sen. Vicente Sotto III seeking 14th month pay for workers nationwide.         

Labor and Employment Secretary Rosalinda Baldoz said a 14th month pay could bring more harm than good to workers, particularly those employed in small and medium enterprises.          

“While everybody would like additional benefits, it’s a matter of how you can give it,” she said.

Baldoz said 99.6 percent of commercial establishments nationwide are considered small and medium enterprises employing a little over 10 workers and could not afford a 14th month pay.                       

“Affordability is the issue,” she said.

Baldoz said a 14th month pay could bring huge additional cost for employers and lead to closures of many commercial establishments and mass displacement of thousands of workers.             

Baldoz said only big companies must be required to give 14th month pay.     

 â€œWe should be thinking more of the 2.9 million unemployed and 17 million underemployed,” she said.   The granting of additional incentives must depend on negotiations between employers and employees or must be performance-based, Baldoz said.

Sotto said workers need another bonus package since the 13th month pay is usually used to pay for Christmas expenses.

“We need extra earnings in the middle of the year to help ordinary workers in school and medical expenses for their family,” he said.

The recent P10 wage increase is too small compared to the daily expenses of ordinary Filipino workers, Sotto said.

The bill aims to cover all government and non-government employees regardless of employment status, designation and the method by which their wages are paid.  

Once passed into law, the 14th month pay bill would cover employees with at least one month employment.

It is proposed that the 13th month pay shall be paid not later than June 14, and the 14th month pay not later than Dec. 24 every year.

The frequency of payment may be the subject of agreement between employer and employee or any recognized/collective bargaining agreement of employees.

The bill proposes that the minimum amount of the 14th month pay shall not be less than 1/12 of the total basic salary of the employee within the calendar year.

Within 60 days from the enactment of this law, the secretary of the Department of Labor and Employment   shall promulgate the implementing rules and regulations.   

Former Catholic Bishops’ Conference of the Philippines (CBCP) president Archbishop Angel Lagdameo yesterday said employees will not be dependent on charity if they would receive the correct salaries and benefits.

“Give them the just salary that is due them before giving them anything out of charity. Justice first, that they be paid what is just,” he said.  

CBCP Public Affairs Committee chairman emeritus Caloocan Bishop Deogracias Iniguez said the proposed 14th month pay must be studied further.

“I have to know whether that would comply with just wage for laborers,” he said. “That is what should be studied, just wage for laborers in the Philippines.” Sorsogon Bishop Arturo Bastes backed calls for employers to increase the pay of their employees.  —  Philippine Star News Service/LPM (FREEMAN)