DUE to the continued economic hardship brought by the pandemic, the Department of Labor and Employment (DOLE) yesterday said it is looking at the possibility of providing subsidy for the 13th month pay of micro business establishments.
In a radio interview, Labor Secretary Bienvenido Laguesma said they are considering helping finance the mandatory 13th month pay of employees from such companies.
“We are looking at this possibility of giving assistance or subsidy to companies that are really having difficulties complying with the 13th month pay law,” said Laguesma.
“We, at DOLE, do acknowledge that there are companies that still face such difficulties,” he added.
Laguesma recalled that such a mechanism had been adopted under the previous administration.
“In 2020, the government provided (some) sort of assistance to micro and small companies,” he said, referring to the government loan program conducted through the Small Business Corporation (SBCorp) for micro and small enterprises.
But with or without a subsidy program, the DOLE reminded all business establishments that the 13th month pay is mandatory, with no exemptions.
This means the 13th month pay must be provided to all eligible employees under the law.
“The law is hard but it is the law, especially since this is basic social legislation… There will be no exemption, no deferment of the 13th month pay,” he explained.
At most, the DOLE chief said the employers and employees may consider having an agreement that will govern the provision of the 13th month pay in consideration of their firm’s financial status.
“It can be subject to discussions between employers and employees. They could come into an understanding based on their own situations,” said Laguesma.
