SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
S.B. No.--1.6. 45 
'13 
SEP 1 i P6:2B 
-------------------------------------------------------------
Introduced by SENATOR VICENTE C. SOTTO III 
The Constitution, Article II, Section 18 provides: 
"The State affirms labor as primary social economic force. 
It shall protect the rights of workers and promote their welfare." 
We recognize the indispensable need to provide our Filipino laborers, 
both from the public and private sectors additional 14th month pay. The recent 
Php 10.00 increase in the minimum wage is too small. Wages have invisibly 
decreased due to the rise in prices of basic commodities. Improved business 
- earnings have not cascaded on its own. The 13th month pay is gobbled up by 
Christmas expenses. We need extra earnings in the middle of the year to help 
in school and medical expenses. Health and education needs of the ordinary 
Filipino must be assisted by our government. This will make the maxim 
attributed to President Ramon Magsaysay become a reality- "Those who have 
less in life should have more in law". 
In view thereof, immediate approval of this 
Senator 
--- -----------------------r---


SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
S.B. No.1645 
,iemlif' 
tl{,Hh:-r \1f Up" ~Hrt't~f''' 
'13 
SEP 11 
P6 :28 
---------------
Introduced by SENATOR VICENTE C. SOTTO III 
AN ACT REQUIRING EMPLOYERS TO PAY 14th MONTH PAY 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:: 
SECTION 1: Short Title- This act shall be known as the 14th 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 government and non-
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 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, lay-
off, recall discharge, assign or discipline employees or to effectively 
recommend such managerial 'actions. 
b. Basic Salary- for the purpose of computing the 14th month pay shall 
include all remunerations or earning paid by this employer for services 
rendered but does not include allowances and monetary benefits which 
are not considered or integrated as part of the regular or basic salary. 
SECTION 5. Mandatory Payment of 14th month pay- All government and non-
government rank and file employees shall be entitled to 14th month pay every 
year. 
-------------


SECTION 6. Time of Payment- The 13th month pay shall be paid not later than 
June 14th and the 14th month pay shall be paid not later than December 24th of 
every year provided however that the frequency of payment of this monetary 
benefits may be the subject of agreement between employer and employee or 
any recognized/ collective bargaining agent of employees. 
SECTION 7. Minimum Amount- The minimum amount of the 14th 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 as 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,