employment

DOLE says all employers must pay 13th month pay despite pandemic

Pia Ranada

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DOLE says all employers must pay 13th month pay despite pandemic

Employees of a mall in Makati City on March 14, 2020, wear protective masks as they perform their daily routine work amidst the COVID-19 pandemic. Photo by Alecs Ongcal/Rappler

Photo by Alecs Ongcal/Rappler

But the government is yet to approve subsidies for small and medium businesses that can't afford to give 13th month pay because of the health crisis
DOLE says all employers must pay 13th month pay despite pandemic

Labor Secretary Silvestre Bello III says no company or employer will be exempt from paying employees their 13th month pay this December, even as businesses suffer blows from the ongoing COVID-19 pandemic.

The Department of Labor and Employment (DOLE) is also ruling out any deferment of the 13th month pay, said Bello on Thursday, October 15.

“We will not postpone, we will not defer, and we will not give any exception to the payment of the 13th month pay. The law says: pay the workers their 13th month pay on or before December 24,” said Bello during a Laging Handa virtual press briefing.

This will be formalized in a DOLE order to be issued on Friday, October 16.

Meanwhile, the government is still unable to assure access to subsidies for businesses that will have a hard time giving their employees’ 13th month pay.

Bello said they have so far just made a “request” to the Department of Finance for such financial assistance for businesses categorized as micro and small enterprises. They are also looking at helping such businesses gain access to loans from banks.

Subsidies for distressed micro, small, and medium enterprises were suggested by the Employers Confederation of the Philippines (ECOP) in its meeting with Bello, the trade department, and workers’ groups on Tuesday, October 13.

There was a small window for employers initially when Bello said part of the Implementing Rules and Regulations of Presidential Decree No 851 exempted “distressed” companies from paying 13th month pay.

But he later backtracked, saying a new law is needed to amend the decree to allow the annual incentive to be paid later than December 25 this year. – Rappler.com

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Pia Ranada

Pia Ranada is Rappler’s Community Lead, in charge of linking our journalism with communities for impact.