The Department of Labor and Employment (DOLE) shall examine the probability of the proposed 14th-month pay to employees and workers in the private sector.
Malacañang reports that President Rodrigo Duterte is studying the bill with his economic managers. Labor Secretary Silvestre Bello III told in a statement on Wednesday, that there is a necessity to preserve the “beneficial social partnership” between workers and employers.
“The proposed 14-month pay for our private workers is a huge help for their families. It’s extra earnings to cope them with the rising inflation but we also have to consider a lot of factors,” Bello said.
The scheme is presumed to affect management and the economy.
“We at DOLE are also consulting with both the labor and management on the feasibility of the 14-month pay to workers. In other words, there is willingness and openness in the proposal for the 14-month pay,” Bello said.
Senate Bill No. 2 or “An Act Requiring Employers in the Private Sector to Pay 14th Month Pay” is still pending in the Senate since July 2016, DOLE said.
The Philippine Chamber of Commerce and Industry, meanwhile, communicated their concern over the bill and stated the proposal, once approved, might force smaller companies to downsize or even close down.
News source: ABS-CBN News