Press Release
September 20, 2013

Sotto wants 14th month pay for workers

In recognition to the indispensable need to provide the Filipino laborers additional income due to the continued price increases of the basic commodities in the country, Senator Vicente C. Sotto III has filed a Bill to require employers to release a 14th month pay.

Sotto said the 13th month pay is gobbled up by Christmas expenses. We need extra earnings in the middle of the year to help ordinary workers in school and medical expenses for their family.

According to Senator Sotto the recent wage increase of P10 is too small compared to the daily expenses of ordinary Filipino workers.

Under the proposed measures, it covers all government and non-government 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.

The Senate Bill 1645 proposes that the 13th month pay shall be paid not later than June 14th and the 14th month pay shall be paid not later than December 24th of every year provided however that the frequency of payment of this monetary benefits may be the subject of agreement between employer and employee or any recognized/collective bargaining agent of employees.

The Bill also suggests that the minimum amount of the 14th month pay shall not be less than 1/12 of the total basic salary earned by the employee within the calendar year.

"Once pass into law, this will make the maxim attributed to President Ramon Magsaysay that "those who have less in life should have more in law", Sotto pointed out.

Within sixty days from the enactment of this law, the Secretary of the Department of Labor and Employment (DOLE) shall promulgate the implementing rules of this law.

If passed into law, any provision of this Act is declared invalid or unconstitutional, other provisions hereof which are not affected thereby shall continue to be in full force and effect.

"Any law, presidential decree or issuance, executive order, letter of instruction, administrative order, rule or regulation contrary to or inconsistent with any provision of this Act as hereby amended or modified accordingly," the Bill added.

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