There is no reason anymore for employers not to pay their employees their 13th month pay.
Labor Secretary Silvestte Bello on Tuesday, Oct. 20, bared that rural bankers have expressed willingness to provide soft loans to micro and small business enterprises.
“I had a call from the president of the Rural Bankers Association of the Philippines advising us that all the rural bankers are willing to provide soft loans to all micro and small business enterprises so they can pay the 13th month pay of their employees,” he said during a Malacañang press briefing.
Bello said the Department of Trade and Industry is also willing to provide the same.
“I just received a letter from Secretary Lopez of DTI and they have a fund of P10 billion in their small business corporation, which is their attached agency. They are willing to share about P4 billion of that for soft loans for micro and small business enterprises,” he said.
The labor chief said they also have a proposal to the President that if there are standby funds or savings to possibly subsidize at least the micro and small business enterprises.
“Based on our DOLE report, it would only cost our government P3.5 billion. But if we will use the as a basis , we will need around P13 billion,” Bello said.
“So, that’s what we are going to ask from the President to maybe subsidize the micro and small enterprises in order for them to pay the 13th month pay of their employees,” he added.
Bello reiterated that employers should pay their employees their 13th month pay on or before Dec. 24, as provided for by Presidential Decree 851.
Last week, the labor department also released Advisory 28-2020 regarding the “Guidelines on the Payment of Thirteenth Month Pay,” which states that “no request or application for exemptions or for deferment of the payment shall be accepted and allowed.”