Malacañang, in an update, reiterates that the law on the grant of the yearly incentive remains in effect. According to Presidential Spokesperson Harry Roque, the 13th month pay cannot be deferred until there is a new law.
“Let the Department of Labor and Employment study it. But in my opinion, that cannot be deferred until there is a new law,” states Presidential Spokesperson Harry Roque, in an article by Inquirer. Read more: 13th month pay can’t be deferred – Palace, an article by Inquirer.
It may be recalled that Labor Secretary Silvestre Bello III revealed that the Department of Labor and Employment (DOLE) is speculating on the possible deferment in granting the 13th-month pay. According to Bello, it would be a considerable option for employees that just exempting distressed establishments from granting the benefit.
“Instead of not paying, why don’t we just consult labor and management so they could agree on deferment, let’s say give the benefit next year or next month. For me this is a more acceptable formula to address the issue of non-payment of the mandated benefit,” states Labor Secretary Silvestre Bello III.
Bello added that, under the law, establishments classified under distressed are exempted from giving 13th-month pay to employees. However, he added that the term ‘distressed’ is broad and needs to be redefined. Moreover, micro, small, and medium enterprises are exempted from giving the 13th-month pay but not companies having capitalization above Php 1 million.
“We are still studying this and it would be a subject of thorough discussion by both management and employees,”Bello adds. Read more: DOLE eyes deferment of 13th month pay, an article by Philippine Star.