Palace says proposed 14th month pay needs more study
MANILA, Philippines - Malacañang on Friday said the proposal to require employers to give 14th month pay to employees needs further study and consultation if employers can afford to give such.
"As these things are, hindi pupuwedeng pikit-matang sige 14th month, e papaano kung hindi pala kaya ng employer, then that necessarily would have to mean a reduction in the labor force which we also do not want," deputy presidential spokesperson Abigail Valte said.
"Kailangan ho muna ng masinsinang pag-uusap at pagtingin doon sa mga posibleng unintended consequences and we leave that to our legislators to do."
Senator Vicente ‘Tito’ Sotto III filed Senate Bill 1645, which mandates the 14th month pay for all rank and file employees.
Under the bill, all government and non-government employees will be entitled to the 14th month pay, which “shall not be less than 1/12 of the total basic salary earned by the employee within the calendar year.”
The bill states that the additional pay will be given "regardless of employment status, designation and irrespective of the method by which their wages are paid."
The proposal has already been thumbed down by the Employers Confederation of the Philippines (ECOP).