The labor department welcomed a proposal in the Senate granting 14th-month pay to employees in the private sector.
Labor Secretary Silvestre Bello III said DoLE will consult with labor and management and consider both their interests, as well as consider the impact of the proposal to the country’s economic stability.
“The President is consulting with our economic advisers. We at DOLE are also consulting with both the labor and management on the feasibility of the 14-month pay to workers. In other words, there is willingness and openness in the proposal for the 14-month pay,” Bello said.
Senate Bill No. 2, otherwise known as “An Act Requiring Employers in the Private Sector to Pay 14th Month Pay” was filed by Senate President Vicente Sotto III and has been pending in the Senate since July 2016.
Under the 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 a 14th-month pay.
Bello said DoLE still has to study the proposed bill to indicate the department’s position depending on the results of consultations. Foremost, he added, is the need to maintain the beneficial social partnership between workers and employers, as well as in considering its possible implications in the economy.
“The proposed 14-month pay for our private workers is a huge help for their families. It’s extra earnings to help them cope with the rising inflation but we also have to consider a lot of factors,” Bello said.