Cebu City Council backs plan to provide 14th mo. salary

THE Cebu City Council is supporting the bill proposed by Rep. Rodrigo Abellanosa requiring establishments to give a 14th month pay to their employees.

At the same time, the city council is also requesting the Department of Labor and Employment (DOLE) to monitor the compliance of establishments in giving out the 13th month salary for their employees.

DOLE was also asked to issue an advisory reminding employers of this legal obligation as well as the guidelines for the 13th month pay which is covered by Presidential Decree 851.

These were contained in the resolution authored by Councilor Alvin Dizon that the council approved last week, during its last regular session for the year.

“We are long overdue in giving our workers their just share in the fruits of production, and the principle of social justice calls for the equitable distribution of wealth as well as giving preferential treatment for the poor especially our working class who are instrumental in fostering the country’s economic development,” read Dizon’s resolution.

Under House Bill 6239, employers will be required to pay their employees, regardless of the nature of their employment, a 14th month salary every year which is equivalent to their 13th month pay.

Abellanosa also wants the existing 13th month pay to be released on or before June of every year, while the 14th-month pay will be released on or before December of each year.

Both the 13th and 14th month salaries, as well as other benefits, should also be excluded from the computation of gross income as long as the total exclusion won’t exceed P82,000.

The DOLE will be crafting the necessary rules and regulations for the implementation of the 14th month pay, if ever it will be passed.

According to Abellanosa, his bill is now with the committee on labor and employment for deliberation.

“Once it is approved by the committee, it will be submitted to plenary for second reading and deliberations,” Abellanosa said in a text message.

In his explanatory note in the proposed House bill, Abellansoa said the additional pay would cover expenses like paying for school fees and educational requirements especially during the opening of the school year.

“This bill also recognizes that motivation is a key factor in promoting productivity in our workforce. Rewards are proven to be useful drivers of motivation and such additional structured incentive may be expected to translate to effective personnel and efficient operations,” he said in his note.