Proposed 14th month pay for workers hefty for micro-enterprises, ECOP says

An employers’ group on Monday said the proposed 14th month pay incentive for private sector workers is a bit hefty for micro-enterprises which account for 90% of businesses in the country.

Employers Confederation of the Philippines (ECOP) president Sergio R. Ortiz-Luis, Jr. said 90% of companies, which are micro-enterprises, cannot afford the additional incentive.

"Medyo mabigat para sa mga micro ‘yan," Ortiz said in an interview on Dobol B sa News TV aired on GMA News TV on Monday.

Micro-enterprise is a business operating on a very small scale, especially one with a sole proprietor and fewer than six employees.

Ortiz explained that large and medium enterprises, which constitute only 2% of all companies in the country, can definitely provide the 14th month pay incentive.

Only 8% of small enterprises comply with giving 13th month pay to employees, he added.

“Ang problema ay 'yung 90% ng ating kompanya ay micro. Iyang mga ‘yan, marami riyan sa 13th month pay lang hindi na nakakasunod,” Ortiz said.

“'Yung legislation, hindi mo na kailangan gawin doon sa mga who can afford it, pero kapag pinilit mo naman 'yung negosyo who can’t afford it, baka mabawasan tayo ng trabaho,” he added.

Senate President Vicente Sotto III earlier filed a bill seeking to give employees in the private sector a 14th month pay, which shall not be below a month's worth of the basic salary of the employee. 

Ortiz said the government should not force this incentive to be provided by the private sector, which is comprised mostly of micro-enterprises.

He said the government itself, which should give health benefits, education benefits, conditional cash transfer incentives and other assistance to its people, cannot even provide for this incentive.

“Ang sinasabi nga namin, 'yung gobyerno hindi nila maibigay 'yung sinasabi na ganyan (incentives). Paano mo mapipilit sa micro, sa private sector?” he said. —Joviland Rita/KG, GMA News