Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

17™ CONGRESS
1°" Regular Session

ino_8815 _

House Bill No.

Introduced by EMMANUEL A. BILLONES

Explanatory Note

This bill seeks to grant a 14" month pay to non-government rank and file employees
as part of the compensation package to our labor force.

This compensation scheme is similar to the mid-year bonus granted to the
government employees which is equivalent to one month basic salary given not
earlier than May of every year aside from the 13" month pay they receive in
December.

Under this bill, the 13" month pay is to be given not later than June 14 and the 14"
month pay is paid not later than December 24" of every calendar year respectively
for the rank and file employees in the private sector. Rank and file means the
ordinary members of a company, or organization excluding the managers and
directors.

The need to provide additional compensation is indeed imperative as the current 13"
month pay received by the ordinary employees is gobbled up my Christmas
expenses in December. They should at least receive extra earnings in the middle of
the year to help defray the expenses incurred in school like enrolment fees,
miscellaneous expenses, books, bags, uniforms among others. The rest of the
amount if there is anything left is for future health and medical expenses for the
family,

Ordinary employees are the lifeline of the economy as they are the ones who
purchase most. And when the economy performs well, all people will benefit from it
as a rising tide raises all ships

In view of the foregoing, passage of this bill is eamestly sought.
EMMANUEL A. BILLONES

Representative
1" District, Capiz

Fr ahnentpafprateeer



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

17™ CONGRESS
1" Regular Session

‘No 8815

House Bill No.

Introduced by EMMANUEL A. BILLONES

AN ACT
REQUIRING EMPLOYERS IN THE PRIVATE SECTOR TO PAY 14™ MONTH PAY

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:

Section 1. Short Title.- This Act shall be known as the "14" Month Pay

Law."
Section 2. Declaration of Policy. — The State affirms labor as a primary
social economic force. It shall protect the rights of workers and promote their welfare,

Section 3. Coverage. ~- This Act shall cover all on-government rank and file
employees regardless of their employment status, designation and irrespective of the
method by which their wages are paid provided that they have worked at least one
month during the calendar year.

Section 4. Definition of Terms. — As used in this Act:

a. Rank and File Employees — are those who are not considered as
managerial employees, They are not vested with powers or prerogatives to
lay down and execute management policies and/or to hire, transfer,
suspend, layoff, recall, discharge, assign or discipline employees or to
effectively recommend such managerial actions.

b. Basic Salary — for the purpose of computing the 14" month pay, the
computation shall include all remunerations or earnings paid by the
employer for services rendered but does not include allowances and
monetary benefits which are not considered integral part of the regular or
basic salary

Section §. Mandatory Payment of 14” Month Pay. - All non-government
rank and file employees shall be entitled to 14" month pay every year.

Section 6. Time of Payment.— The 13" month pay shall be paid not later
than June 14" and the 14"" month pay shall be paid not later than December 24" of
every calendar year respectively; Provided, That the frequency of payment of these
monetary benefits may be subject of the agreement between employer and
employee or any recognized or collective bargaining agent of employees.


Section 7. Minimum Amount.— The minimum amount of the 14" month pay
shall not be less than 1/12 of the total basic salary earned by the employee within
the calendar year.

Section 8. implementing Rules. - Within sixty days from the enactment of
this law, the Secretary of the Department of Labor and Employment (DOLE) shall
promulgate the implementing rules of this law.

Section 9. Separability Clause. — If any provision of this Act is declared
invalid or unconstitutional, other provisions hereof which are not affected thereby
shall continue to be in full force and effect.

Section 10, Repealing Clause. - Any law, presidential decree or issuance,
executive order, letter of instruction, administrative order, rule or regulation contrary
to or inconsistent with any provision of this Act is hereby amended or modified
accordingly

Section 11. Effectivity Clause. - This Act shall take fifteen (15) days
following its publication in the Official Gazette or in at least two (2) newspaper of
general circulation.

Approved,