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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
1st Regular Session 
House Bill No. ________ 
Introduced by Representatives PAOLO Z. DUTERTE, ERIC G. YAP, 
and EDVIC G. YAP 
EXPLANATORY NOTE 
The workforce fuels every aspect of the society – from the production to the delivery 
of products and services. Truth be told, the government cannot function without each 
and every one of the civil servants who render their time and skills for public service. 
Likewise for the private companies, as their employees support the operations of the 
company to generate its income.   
Through the Presidential Decree No. 851, the 13th Month Pay was institutionalized. It 
was enacted to further protect the level of real wages from the strain of inflation and 
to show its concern for the worker so them may properly celebrate Christmas and 
New Year.  
With the constant rise in the cost of living in the country, the wage received by Filipino 
workers seem to be not enough to cover additional expenses. It is the responsibility of 
the State to address this difficulty experienced by its people. According to Article II 
Section 18 of the 1987 Constitution, the State affirms labor as a primary social 
economic force. It shall protect the rights of workers and promote their welfare. 
This bill seeks to recognize the contribution rendered by the Filipino workforce.  
It mandates all employers in the government and private sector to accord a 14th Month 
Pay to its employees, regardless of the employees’ status of employment. Moreover, 
this bill sought to improve employee morale, motivation, and productivity. This 
adjustment considers the need of the employees for extra earnings in the middle of 
the year to help them cope in school and medical expenses of their family. 
In view of the foregoing, approval of this bill is earnestly sought. 
PAOLO Z. DUTERTE 
       ERIC G. YAP 
EDVIC G. YAP         
May 25, 2023
9:00 am
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1 
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
1st Regular Session 
House Bill No. ________ 
Introduced by Representatives PAOLO Z. DUTERTE, ERIC G. YAP, 
and EDVIC G. YAP 
AN ACT 
MANDATING THE 14TH MONTH PAY FOR ALL EMPLOYEES IN THE 
GOVERNMENT AND PRIVATE SECTOR REGARDLESS OF STATUS OF 
EMPLOYMENT 
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.” 
SEC. 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. 
SEC. 3. 14th Month Pay. – All employees in the private sector entitled to 13th 
month pay shall also be entitled to 14th month pay, which shall be equivalent to one 
month of the employees’ total basic monthly salary. 
SEC. 4. Government Employees. – All government employees regardless of 
their employment status shall also be entitled to both 13th month pay and 14th month 
pay. 
SEC. 5. Exempted Employers. – The rules governing the exemption of 
employers in the private sector from paying 13th month pay shall also apply to 14th 
month pay. 
SEC. 6. Schedule of Release of 13th and 14th Month Pay. – The existing 13th 
month pay shall be released by the employer on or before May 31 and the 14th month 
pay shall be released on or before November 30 of each calendar year. 
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SEC. 7. Prorated 14th Month Pay. – For employees employed for less than one 
(1) year, their 14th month pay shall be prorated according to the number of months 
served. In no case shall the 14th month pay be less than 1/12 of the employees’ total 
basic salary. 
 
SEC. 8. Tax Implications. – The 14th month pay shall be excluded from the 
computation of the employee’s gross income. Provided, however, that the total 14th 
month pay shall not exceed ninety thousand pesos (P 90,000.00) as mandated by law. 
 
SEC. 9. Implementing Rules and Regulations. – The necessary rules and 
regulations to carry out the provisions of this Act shall be issued within thirty (30) 
days from the approval of this Act by the: (a) Department of Labor and Employment 
(DOLE) for the private sector; (b) Department of Finance (DOF) and Department of 
Budget and Management (DBM), in consultation and Civil Service Commission 
(CSC), for the government sector; (c) SSS for its members; and (d) GSIS for its 
members. 
 
SEC. 10. Separability Clause. – If any provision or part hereof is held 
unconstitutional, the other provisions not otherwise affected shall remain valid and 
subsisting. 
 
SEC. 11. Repealing Clause. – All laws, decrees, issuances, executive orders, 
letters of instruction, administrative orders, rules and regulations, or parts thereof, 
contrary to or inconsistent with the provisions of this Act are hereby repealed, 
amended, or modified accordingly. 
 
SEC. 12. Effectivity. – This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in any newspaper of general circulation.   
 
 
Approved,