Bello considering proposal for gov’t to subsidize 13th month pay for distressed firm

October 14, 2020

Labor Secretary Silvestre Bello III said Wednesday that he is  considering a proposal for  government to subsidize the 13th month pay for employees working in distressed firms.

In a radio interview, Bello said is consulting with other labor officials on this proposal of the Employers Confederation of the Philippines (ECOP).

"We are considering the proposal of the employer's sector. I'll even ask help from Trade Secretary Ramon Lopez to get the support of Finance Secretary Carlos Dominguez," said Bello.

"This way, he might consider government subsidizing distressed employers (in providing 13th month pay)," he said.

Bello said the proposal of ECOP was the best put forward in last Tuesday's National Tripartite Industrial Peace Council (NTIPC) meeting between the government, employers and labor sectors.

Bello said employers have expressed their desire to provide the 13th month pay mandatory under Presidential Decree No. 851.

"The employers are not turning their backs. They want to give (13th month pay). But how can you squeeze blood from a rock?" he related.

"In other words, they are willing to pay but are really incapable to due to their losses," added Bello.

Bello said  the labor sector want the 13th month pay paid saying it is provided for by law/

"They even said that the exemption is not provided in PD 851," added Bello. DMS