DOLE open to 14th month pay for private sector employees

Published August 15, 2018, 3:24 PM

by Patrick Garcia

By Leslie Ann Aquino

The Department of Labor and Employment is open to the proposal in the Senate for the grant of 14th month pay to employees in the private sector.


Labor Secretary Silvestre Bello III revealed that DOLE is consulting with both labor and management on the feasibility of such a proposal.

“The President is consulting with our economic advisers. We at DOLE are also consulting with both the labor and management on the feasibility of the 14-month pay to workers. In other words, there is willingness and openness in the proposal for the 14-month pay,” he said in an interview.

But Bello said endorsing it would depend on the result of the consultations.

(It will) depend on the result of our consultation with labor and management and also depending on the result with the consultation of the president with his economic advisers,” he said.

But Bello personally believes that the proposal would be feasible since it will only be given once a year.

He added that the proposed 14-month pay for private workers is a huge help for their families.

“It’s extra earnings to cope them with the rising inflation but we also have to consider a lot of factors,” Bello said.

The DOLE still has to study the proposed bill on the need to maintain the beneficial social partnership between workers and employers, as well as in considering its possible implications in the economy.

Senate Bill No. 2, otherwise known as “An Act Requiring Employers in the Private Sector to Pay 14th Month Pay” was filed by Senate President Vicente Sotto III and has been pending in the Senate since July 2016.

Under the bill, “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” are entitled to a 14th month pay.