The Department of Labor and Employment eyes aid for smaller companies in helping to give their employee’s 13th month pay before the deadline.
The Department of Labor and Employment (DOLE) said that the government is currently looking into providing a new round of assistance to firms which are having trouble paying their employees' 13th month benefits.
Labor Secretary Bienvenido E. Laguesma said that the aid may come in a form of subsidy.
“We are studying if we can give assistance or subsidy to companies, which are unable to comply with the 13th month law.” Business Mirror quoted Laguesma.
Assistance can also be the reimplementation of the interest-free loan facility of the Small Business Corp. (SB Corp.) which was launched a year ago.
DOLE is checking if the facility is still open and available, and its status of repayment by those who were helped.
SB Corp. allocated P500 million for its “soft loan” program last year, in order to help micro and small firms meet their 13th month payouts.
DOLE is considering providing the support needed since no company can be exempted from Presidential Decree (PD) 851 which grants the 13th month benefit for employees in the private sector.
Under PD 851, the 13th month pay should be proportionate to the total salary earned by workers in a year divided by 12 months.
Even though it may be challenging for smaller businesses to comply with the law, it nonetheless exists. It remains a fundamental social law to assist employees.
Laguesma urged employers to give the 13th month benefit to their employees before its deadline on Dec. 24, 2022.
Tags: #DOLE, #13thMonthPay, #SmallerFirms