Small businesses may borrow from SBC for employees' 13th month pay

Small businesses may borrow from the Small Business Corporation (SBC) of the Department Trade and Industry (DTI) to give employees their mandatory 13th month pay. 

According to JP Soriano's "24 Oras" report on Friday, the qualified small businesses are those with 40 employees or less.

The SBC will lend up to P15,000 for the 13th month pay of each employee, up from the P12,000 per employee it lent last year.

Labor Secretary Bienvenido Laguesma said more businesses were also allowed to borrow from the SBC without collateral.

"Last year, micro and small ngayon pati medium sinama nila," Laguesma said.

The program was continued because many of those who earlier borrowed were paying on time.

Base on the inspected establishments of DOLE, at least 97.1% gave 13th month pay to its employees in 2021. This was an increase from 90.9% in 2020.

"Walang exemption doon sa pagbabayad ng 13th month pay at yan ay dapat bayaran on or before December 24," Laguesma said.—Richa Noriega/LDF, GMA Integrated News