Bello eyes gov’t subsidy for 13th month pay-out of distressed firms - Manila Bulletin

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Bello eyes gov’t subsidy for 13th month pay-out of distressed firms

Labor Secretary Silvestre Bello III on Wednesday said he is considering the proposal of employers for the government to subsidize the 13th-month pay of workers employed by companies in distress.“I will consider what the employers said…Im going to ask help from my partner Secretary [Ramon] Lopez of DTI ,” he told Teleradyo.

The National Tripartite Industrial Peace Council composed of labor groups, business and employers, and government met Tuesday to discuss the issue on 13th month pay among others. During the said meeting, workers strongly opposed giving exemptions to the payment of 13th month pay.“The workers want to be paid the 13th month pay as stipulated in Presidential Decree 851,” he said.

“The employers in turn…are willing to give but are really incapable due to their losses,” added Bello.Under PD 851, all employers are required to pay all their employees a 13th-month pay not later than December 24 of every year. The Implementing Rules and Regulations of PD No. 851, however, provides exemption to the payment of the 13th month pay if they are deemed as “distressed employers”, or those that are currently incurring substantial losses.

 

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