DOLE’s Bello: We will not postpone, defer, give exemption to payment of 13th month pay

Deferring or giving exemption to the payout of the 13th month pay benefit is no longer on the table, Labor Secretary Silvestre Bello III announced Thursday, as the government will move forward with handing out subsidies or loans to “distressed” employers to enable them to comply with the labor standard.

“We will not postpone, defer, and we will not give any exemption to the payment of 13th month pay,” Bello said during the Laging Handa public briefing.

“The law says, ‘pay the workers their 13th month pay on or before December 24,’ ‘yan po ang ipapatupad ng Department of Labor,” he said. 

Bello said that DOLE acknowledges that many businesses, especially micro, small, and medium enterprises (MSMEs), will be unable to comply with the 13th Month Pay law.

Thus, the Labor Department requested the Department of Finance (DOF) for a subsidy.

“Ngayon, alam natin naman na ‘yung mga employers they want to give kaya lang meron talagang hindi kaya at ito ‘yung micro, small, and medium enterprises. ‘Yun ang tutulungan natin if our Secretary of Finance will approve our request na i-subsidize ‘yung mga micro and small enterprises,” he said.

“Kung hindi natin maibigay ‘yung subsidy na ‘yon, puwede natin silang bigyan ng loan facility sa lahat ng mga bangko,” he added.

Financial assistance

On Wednesday, Labor Undersecretary Benjo Benavidez said among the strategy proposals discussed during the National Tripartite Council meeting with labor groups, employers group, and the government is the possibility of extending financial assistance to companies affected by the COVID-19 pandemic to enable them to comply with the 13th Month Pay law. 

The government, Benavidez said, recognizes that several sectors are still not allowed to resume their business operations since most of the country, especially Metro Manila, is still under community quarantine against COVID-19’s spread.

Just last week, Bello was quoted as saying that micro, small, and medium enterprises (MSMEs) that are “in distress” can be allowed not to give its employees the mandatory 13th month pay.

“Under the law, kailangan bayaran ang 13th month pay.  Ang exemption diyan is kapag ang company is in distress,” Bello told Super Radyo dzBB in an interview. “Most probably yung mga in distress ay yung galing sa micro, small and medium industries.”

Bello was referring to Presidential Decree No. 851, which mandates employers from the private sector to pay their rank-and-file employees a 13th month pay not later than December 24 every year.

But presidential spokesperson Harry Roque said that employers cannot defer giving their employees the mandated 13th month pay.

“The law has not been amended. That is the law. That is a mandatory provision of the Labor Code,” Roque said at a news conference in Malacañang on Monday.

“Pabayaan po nating pag-aralan ng DOLE [Department of Labor and Employment]. Pero sa aking tingin, hanggang magkaroon ng bagong batas ay baka hindi po iyan pupuwedeng ma-defer,” Roque said. 

The proposal was also met with opposition from the labor sector as well as from lawmakers. — RSJ, GMA News