Mandatory 14th month pay for workers proposed

A Visayan lawmaker has filed a bill mandating all employers to pay their employees, regardless of the nature of employment, a 14th-month salary every year, equivalent to the 13th month pay.

Cebu Rep. Rodrigo Abellanosa filed House Bill 6239 or the proposed “14th Month Salary Law” to provide additional benefits for the country’s working class.

“Our workers have continuously fought for sufficient wages that will provide their families with comfortable lives. Their battle, having seen small victories, though has yet to be won,” he said.

Income boost He noted that in 1976, Presidential Decree No. 851 institutionalized the 13th month pay in recognition of the masses’ continuous struggle to provide for the needs of their families and in recognition to the culturally ingrained tradition in the Philippine society of celebrating the Christmas holidays.

“The bill acknowledges the above facts but understands as well that most of our workers still strive to barely keep their heads above water with their meager salaries, while education continues to be a drain in their resources,” Abellanosa said.

Annual school fees “Every time, as the academic year opens, our workers find themselves in a fix to provide for their dependents’ school fees and other educational requirements,” Abellanosa added.

“The bill proposes that an additional month’s pay be included in workers’ compensation schemes to cover for such expenses, making our labor force’s lives a little bit better while ensuring the youth have access to education,” he explained.

Tax-free

House Bill 6239 provides that the existing 13th month pay shall be released on or before June of every year, while the 14th month salary shall be released on or before December of each year, provided that the frequency of payment may be the subject of agreement between employer and employee or any recognized/collective bargaining agent of employees.

The measure also provides that the 14th-month salary, together with the 13th month pay and other benefits shall be excluded from the computation of gross income, provided however that the exclusion shall not exceed R82,000.