The Employers Confederation of the Philippines said Monday the proposed 14th-month pay incentive for private sector workers was rather hefty for micro-enterprises which account for 90 percent of businesses in the country.
ECOP president Sergio Ortiz-Luis Jr., in an interview on Dobol B sa News TV aired on GMA News TV heard nationwide, said 90 percent of companies, which were micro-enterprises, could not afford the additional incentive.
Micro-enterprise is a business operating on a very small scale, especially one with a sole proprietor and fewer than six employees.
Ortiz explained that large and medium enterprises, which constituted only 2 percent of all companies in the country, could definitely provide the 14th-month pay incentive.
Only 8 percent of small enterprises comply with giving 13th-month pay to employees, he added.
Senate President Vicente Sotto III earlier filed a bill seeking to give employees in the private sector a 14th month pay, which shall not be below a month’s worth of the basic salary of the employee.
Ortiz said the government should not force this incentive to be provided by the private sector, which is comprised mostly of micro-enterprises.
He said the government itself, which should give health benefits, education benefits, conditional cash transfer incentives and other assistance to its people, cannot even provide for this incentive.