House bill seeks 14th month pay for all employees

A measure mandating the grant of 14th month pay to employees both in the government and in private sector has been proposed in the House of Representatives.

Kabayan party-list Representative Ron Salo made the proposal under his House Bill No. 520, which grants the 14th month pay to all employees in the public and private sector regardless of the employee's status of employment.

Under Salo's bill, the 13th month pay already required by law will be paid to the employees on or before May 31 of each year in anticipation of the school enrollment of the employees' dependents.

The 14th month pay, meanwhile, will be given to the employees on or before November 30 of each year in time for the traditional Christmas celebration.

For employees employed for less than one year, the 14th month pay will be prorated according to the number of months served. The bill also says the 14th month pay should not be any less than an employee's monthly basic salary.

Salo's proposal excludes the 14th month pay from the computation of the employee's gross income, provided that it will not exceed the allowed exemptions pursuant to the National Internal Revenue Code or its Implementing Rules and Regulations.

"Presidential Decree No. 851 institutionalized the 13th month pay in recognition of the continuing struggle of the labor force in providing for the needs of their families, as well as in incentivizing them to work harder for the betterment of the economy and the society, in general, and for the good of their respective employers. However, many Filipino families still struggle to sufficiently provide for their families because of meager salaries, among others," Salo said in his explanatory note.

"With the continuously rising cost of living in the Philippines, it is incumbent upon the State to address the plight of its workers in both the government and private sectors," Salo added.

The 14th month pay, Salo said, also aims to incentivize and motivate all employees to work harder and increase productivity.  —KBK, GMA News