AMID talks about the capability of micro and small businesses to provide their employees their 13th month pay, at least 1,000 of about 15,300 companies inspected by the labor department were found to have failed to give the benefit last year.
Labor Undersecretary Ana Dione said the companies will be issued compliance orders by the Department of Labor and Employment (DOLE).
“This means that we will be forcing them to pay the 13th month pay,” she said.
She noted a “large percent” of the establishments inspected complied with the payment of 13th month.
Under Presidential Decree No. 851, the 13th month pay should be given to employees not later than December 24 of every year.
The amount of 13th month pay shall at least be 1/12 of the total basic salary earned by the employee for the year.
Recently, however, several business groups have raised concerns about their inability to pay their employees’ 13th month bonus due to the financial difficulties they faced amid the COVID-19 pandemic.