Up to P13.7-B needed for workers’ 13th-month pay subsidy: DOLE

FILE: Department of Labor and Employment Secretary Silvestre Bello III during a press conference on Thursday (Sept. 27, 2018), which is held at the DOLE main office in Intramuros, Manila.(PNA photo by Gil Calinga)

MANILA – The government would need to spend up to PHP13.7 billion to subsidize the 13th-month pay of workers in businesses hit by the coronavirus disease 2019 (Covid-19) pandemic, Labor Secretary Silvestre Bello III said on Friday.

In a virtual presser, Bello said they have two bases for computation of the amount to be shelled out for the mandatory benefit for workers, particularly in micro and small business enterprises.

“There are two (bases) for computation we are looking at.

The PSA (Philippine Statistics Authority), they have data stating there are 5.1 million workers affected by coronavirus disease 2019 (Covid 19). But our DOLE (Department of Labor and Employment) records based on the notices we received from employers, there are only 1.5 million employees affected,” he said in a virtual press briefing.

The possible subsidy will range from PHP5 billion to PHP13.7 billion.

Asked on how they will consolidate the figures, Bello said, “we will recommend it to the Office of the President through the executive secretary…they will talk to us, we will discuss it on. Then we will come up with what will be our basis. It is important that they will agree to a subsidy.”

He added that companies have to apply for the subsidy and must prove that they are qualified.

“They would have to apply for it and we will determine if they really need the subsidy,” he said.

Bello reiterated that there will be no exemption from paying the 13th-month pay.

“There are no more exemptions, all are required to pay,” he added.

Under Presidential Decree 851, all employers are mandated to pay the 13th-month pay on or before December 24.