Senate Leader Refiles 14th-Month Pay Bill
Senate Minority Leader Vicente “Tito” Sotto III has reintroduced a bill mandating private-sector employers to provide a 14th-month pay. This proposal aims to ease Filipino families’ financial pressures caused by rising prices and to help them better manage educational costs. The 14th-month pay would come in addition to the current 13th-month pay, a benefit established under Presidential Decree No. 851 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 emphasized, highlighting the urgent need for this additional support.
Details of the Proposed 14th-Month Pay
The proposed 14th-month pay would be calculated as no less than one-twelfth (1/12) of the total basic salary an employee earns within the calendar year. This ensures a fair and consistent benefit for all qualified workers. Sotto recommended that the 13th-month pay be disbursed by June 14 to assist families with their children’s education expenses.
Meanwhile, the 14th-month pay should be released by December 24 to help Filipino families manage holiday and year-end expenditures. This schedule aims to provide timely financial relief during critical periods of the year.
Who Will Benefit from the 14th-Month Pay?
The bill covers all non-government rank-and-file employees, workers under the Kasambahay Law, and other individuals already entitled to the 13th-month pay. To qualify, employees must have worked at least one month during the calendar year. Community members noted that this broad coverage ensures many Filipino workers receive meaningful financial assistance.
Exemptions to Support Struggling Employers
However, the measure includes exemptions for companies facing financial difficulties. Distressed businesses, non-profit organizations with significant income declines, and employers who already provide a 14th-month pay or its equivalent are exempt from this additional requirement. Local leaders reported that these provisions are designed to protect struggling enterprises from undue hardship.
“The bill has exemptions for qualified employers so as not to burden struggling businesses, which are equally important for our economy,” Sotto remarked, underscoring the balance between supporting employees and maintaining business viability.
Balancing Employee Welfare and Economic Stability
This legislative effort reflects a commitment to improve workers’ welfare without compromising the health of the private sector. Officials reported that the bill carefully weighs the needs of employees while considering the capacity of employers to comply. The 14th-month pay is seen as a timely response to the evolving economic challenges Filipino families face today.
For more news and updates on 14th-month pay, visit Filipinokami.com.
