Proposed 14th month pay heavy—ECOP

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.

Topics: Sergio Ortiz-Luis Jr , Employers Confederation of the Philippines , Vicente Sotto III ,
COMMENT DISCLAIMER: Reader comments posted on this Web site are not in any way endorsed by Manila Standard. Comments are views by readers who exercise their right to free expression and they do not necessarily represent or reflect the position or viewpoint of While reserving this publication’s right to delete comments that are deemed offensive, indecent or inconsistent with Manila Standard editorial standards, Manila Standard may not be held liable for any false information posted by readers in this comments section.
AdvertisementSpeaker GMA