KABAYAN party-list Rep. Ron Salo has refiled his bill which seeks to grant employees in both public and private sectors 14th month pay regardless of the employee’s status of employment.
Under House Bill No. 520, employers will be mandated to release the 13th month pay to employees on or before May 31 annually in anticipation of the school enrollment of the employees’ children and dependents, while the 14th month pay will have to be given on or before November 30 of each year in time for Christmas.
“Legislating 14th month pay is a way to comply with the constitutional mandate of uplifting the dignity of our laborers and workers. We should treat our laborers as real partners of development and they should receive their rightful share in the fruits of their labor,” Salo said, noting that the 14th month pay cannot be lower than a month’s salary.
The bill, which Salo also filed in the 17th Congress, pointed out that Presidential Decree No. 851 “institutionalized the 13th month pay in recognition of the continuing struggle of the labor force in providing for the needs of their families, as well as in incentivizing them to work harder for the betterment of the economy and the society, in general, and for the good of their respective employers.”
“However, many Filipino families still struggle to sufficiently provide for their families because of meager salaries, among others,” the bill said. “With the continuously rising cost of living in the Philippines, it is incumbent upon the State to address the plight of its workers in both the government and private sectors.”
The bill proposes that the 14th month pay will be prorated based on the number of months served by employees employed for less than a year. It also excludes the 14th month pay from the computation of the employee’s gross income, provided that it will not exceed the allowed exemptions pursuant to the National Internal Revenue Code or its Implementing Rules and Regulations.
