On top of the mandated 13th month pay, Kabayan Party-list Rep. Ron Salo has filed a bill that, if enacted, would direct both public and private sector employers to give their employees a 14th month pay, regardless of the beneficiary’s status of employment.
Salo filed House Bill (HB) 520–otherwise known as the 14th Month Pay Law–last June 30, and it has been pending with the House Committee on Civil Service and Professional Regulation since July 26.
“Despite the existence of 13th month pay, many Filipino families still struggle to sufficiently provide for their families because of meager salaries, among others. 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 wrote in his explanatory note for HB 520.
Under this bill, the obligatory 13th month pay would be paid to employees “on or before May 31 of each year in anticipation of the school enrollment of the employees’ dependents".
Meanwhile, the 14th month pay would be distributed on or before Nov. 30 of each year in anticipation of the holiday season. This would be excluded from the computation of an employee’s gross income.
The Salo measure directs the Department of Labor (DOLE) to enact for the private sector; it taps the Department of Finance (DOF), the Department of Budget and Management (DBM), and the CIvil Service Commission (CSC) to enact the bill’s provisions for government employees; and the Social Security System and the Government Service Insurance System (GSIS) for its own members.