Sotto files bill for mandatory 14th month pay

Senator Vicente C. Sotto III filed Senate Bill No. 193 in the Senate, proposing a mandatory 14th month pay for all private sector workers to address rising living costs.

The bill stipulates that the minimum amount of the 14th month pay should be at least one-twelfth of an employee's total basic salary earned within the calendar year and would provide additional support for employees.

It covers non-government rank-and-file employees, domestic workers under Republic Act No. 10361, and those already entitled to a 13th month pay, provided they have worked for at least one month during the year.

The bill proposes that employers release the 14th month pay by December 24 each year to assist with educational expenses and holiday celebrations, while advancing the deadline for the 13th month pay to June 14.

Mr. Sotto noted that the payment schedule is subject to agreement between employer and employee or any recognized collective bargaining agent, and includes exemptions for distressed employers, the government, and those already providing a 14th month pay.