Some employers may tap Bayanihan 2 aid for 13th month pay —Villanueva

Some employers may tap into the P10-billion worth of loanable funds from the government under the Bayanihan to Recover as One Act to augment their capacity to provide the 13th month pay of their employees, Senator Joel Villanueva said on  Tuesday.

"Our MSMEs (micro, small, and medium enterprises) are one of the hardest hit sectors by the pandemic. In Bayanihan 2 we alloted P39.47 billion for our government financial institutions to help our enterprises, and particularly we alloted P10 billion for the small business corporation," Villanueva, chair of the Senate committee on labor, said in an interview on ANC.

"I believe and I've been calling DTI to facilitate these loans... With this pandemic baka zero interest po 'yan. That's a P10 billion ayuda that they can tap for the 13th month pay," he added.

The senator, however, lamented that most of the Bayanihan 2 funds have not been released yet by the Department of Budget and Management.

"Definitely by next week, I'm sure a lot of my colleagues will be looking forward to calling the attention of the Department of Budget and Management," he said.

Bayanihan 2 is set to expire on December 19 and the funds that the law earmarked for various sectors affected by the pandemic must be released before the said date.

The Department of Labor and Employment (DOLE) officially declared on Friday that employers cannot defer or be exempted from giving the 13th month pay benefit of their employees.

Its Labor Advisory No. 28 states that “no request or application for exemption from payment of 13th month pay, or for deferment of the payment thereof shall be accepted and allowed.”

Labor Secretary Silvestre Bello said that only businesses categorized as micro and small may be granted assistance should the government decide to subsidize the 13th month pay for employees of “distressed” employers.

Before the issuance of the advisory, Bello raised the possibility of postponing the payout of the 13th month pay in consideration of the economic challenges posed by the COVID-19 pandemic to some companies.

The proposal did not sit well with various labor groups and even lawmakers.

Malacanang said the release of the 13th month pay could not be deferred because it was mandatory under the Labor Code.

Under Presidential Decree 851, all employers are mandated to release the 13th month pay on or before December 24, regardless of the nature of the workers’ employment. -NB, GMA News