A group of businessmen in Iloilo is not amenable to the proposed 14th month pay for workers in private companies.
Senate President Vicente “Tito” Sotto III has been pushing for the passage of Senate Bill No. 2 or otherwise known as “An Act Requiring Employers in the Private Sector to Pay 14th Month Pay”.
He said “rank-and-file employees regardless of their employment status and designation” should be entitled to 14th month pay aside from the 13th month pay they get every year.
According to Iloilo Business Club (IBC) Executive Director Lea Lara, the additional bonus equivalent to one month’s basic pay would burden, especially small businesses in Iloilo
“Not all businesses here can afford to give sang dugang nga bonus,” she said.
“Actually, some of our big companies were already giving their employees 14th month pay,” Lara added.
Under the proposed bill, companies may be exempted from giving the 14th month pay if they can prove, through their declaration of income at the Bureau of Internal Revenue (BIR), that they are not able to provide such bonus.
“Kung hindi mo naman kaya di mo naman kailangan magbigay. Makikita naman sa BIR kung kaya o hindi,” Sotto explained.
Lara said it would be less difficult for employers to comply if the 14th month pay is equivalent to half of their respective workers’ monthly salaries.
Sotto’s bill is currently pending in the Senate labor committee.
“Baka, sana, August o September ito mapasa na,” he said.IMT