Employees: Mandatory 14th Month Pay

Not long after the approval of the extension of maternity leave, the House Committee on Labor and Employment commenced the discussion of the “14th-month pay bill.”

The mandatory 14th-month pay is needed amidst the rising prices of good such as rice and petroleum products stated by Representative Rodrigo Abellanosa of Cebu City 2nd District. Not to mention the increased fares. The employees take-home pay could no longer pay their home needs, Rodrigo added.

When the school year starts, the 13th-month pay should be given on May or June under the new suggested bill. November or December in time for the Christmas Holidays, the 14th-month pay should be given.

Employees and employers have different opinions. Employees voiced their agreement while employers says that this bill will only increase their company costs.

The suggested bill will increase their company costs and this will give a disadvantage to them since the competitors can offer cheaper imports and smuggled goods. Either the consumers will have to adjust with the price change of the employers have to lay off some of the employees to compensate with the company costs caused by the mandatory 14th-month pay. It can even cause them to just close the business.

(ECop) Employers Confederation of the Philippines.

The legislators consider skills training and other productivity-focused measures instead of the mandatory 14th-month pay, ECoP suggested. It is better for workers to work hard for it first before they get the incentives.

As an alternative from 13th-month pay, the National Wages and Productivity Board alongside the Department of Trade and Industry suggest that there should be certain categorization since not all can comply with the mandatory 14th-month pay.

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