Subsidy eyed for MSME workers’ 13th month pay

MANILA, Philippines — The Department of Labor and Employment (DOLE) is eyeing a subsidy for micro, small and medium enterprises (MSMEs) so they can give the 13th month pay of their employees as mandated by law.

“That is what we are studying, perhaps we could provide assistance or subsidy to these companies that are really incapable of fulfilling the 13th month pay law,” Labor Secretary Bienvenido Laguesma, speaking in Filipino, said in a radio interview yesterday.

Laguesma noted that for the past two years, the government had provided assistance to MSMEs severely affected by the pandemic and having difficulty giving their employees their 13th month pay.

“There is no exemption, no deferment (to giving the 13th month pay). We recognize employers having difficulty in paying up, but the law gives no exemption,” the labor chief stressed.

Under the law, employers must give all their rank-and-file workers the 13th month pay on or before Dec. 24.

This covers all workers, whether regular or contractual, provided they have worked at least one month within the year. Even those who have resigned or were terminated from their work within the year are entitled to it, the DOLE said.

However, workers and employers may negotiate and agree on terms of payment of the mandatory benefit, said Laguesma.

“The agreement must be abiding of the law. It must not be forced upon an employee in order to satisfy the requirement of the law,” he said.

The DOLE secretary urged employers to release the 13th month pay early to avoid complaints lodged against them by their workers.

Wage hike

Meanwhile, a group of workers marched to Malacañang yesterday to dramatize their demand for an immediate wage increase.

Members of the All Workers Unity (AWU) called on President Marcos to urgently address the economic crisis and heed their demand for a salary increase.

“It has been months of hardships and hunger for us because of the magnitude of this crisis,” AWU convenor Elmer Labog said in Filipino while noting that living conditions of workers have worsened since Marcos assumed the presidency.

“Our salaries keep on devaluating because of increased inflation,” Labog said, noting that their rally is just a preview of a much bigger protest action labor groups are planning to mount to commemorate Bonifacio Day next week.

Minimum wage earners in National Capital Region are just getting a daily pay of P570, which is way below the P1,133 family living wage.

“There are a lot of things ‘Junior’ can do as President of the country. First among these is issuing an executive order and wage orders to raise salaries,” said Labog, adding that such increase is needed by both private and public sector wage earners.