DOLE backs 14th month pay for workers

MANILA, Philippines — The Department of Labor and Employment (DOLE) yesterday gave its support for the proposed bill mandating employers nationwide to provide 14th month pay to their workers.

“We support anything that benefits our workers and their families,” Labor Secretary Silvestre Bello III said in an interview.

He, however, said the proposed measure must also provide a balance between the financial needs of workers and the capability of employers to grant additional pay to employees.

Bello said DOLE will first study the impact of the proposal of Senate President Vicente Sotto III to the country’s economic stability.

“The bill should consider the interests of both management and labor and its impact on the economy,” Bello pointed out.

Sotto earlier re-filed Senate Bill 10, otherwise known as “An Act Requiring Employers in the Private Sector to Pay 14th Month Pay.” The measure has been pending in the Senate since July 2016.

Under the proposed bill, “rank-and-file employees regardless of their employment status, designation and irrespective of the method by which their wages are paid, provided that they have worked at least one month during the calendar year” are entitled to 14th month pay.

According to Bello, the proposed bill must be studied carefully and must undergo a tripartite assessment to determine its viability under the country’s present economic situation, considering that the Philippines’ economy largely depends on the sustainability of its micro, small and medium enterprises (MSMEs).

“We must take note that around 90 percent of the businesses in the country are MSMEs, so we must always consider the capability of the employers to bear extra expenses,” Bello said.