Republic of the Philippines
= HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SIXTEENTH CONGRESS
Third Regular Session

6239

HOUSE BILL NO.

Introduced by Representative Rodrigo A. Abellanosa

EXPLANATORY NOTE

Our workers have continuously fought for sufficient wages that will provide their families with
comfortable lives. Their battle, having seen small victories, though, has yet to be won. Those
of us in the government chose to be in our place because we all want to serve our people.
We may not fully succeed in immediately uplifting the quality of their lives, but in smaller
ways, we all aim to help alleviate their plight somehow.

This bill seeks to provide additional benefits for our working classes by providing for the
mandatory payment of the 14” month pay. in 1976, Presidential Decree No. 851
institutionalized the 13" month pay in recognition of the masses’ continuous struggle to
provide the needs of their families. It also recognized the tradition culturally ingrained in our
society celebrating the Christmas holidays.

This bill acknowledges the above facts but understands as well that most of our workers still
strive to barely keep their heads above water with their meagre salaries, while education
continues to be a drain in their resources. Every time, as the academic year opens, our
workers find themselves in a fix trying to provide for their dependents’ (be it their children,
their siblings, nephews and nieces, or anyone who is part of their extended families) schoo!
fees and other educational requirements. In this connection, the bill proposes that an
additional month's pay be included in workers’ compensation schemes to cover for such
‘expenses, making our labor force's lives a little bit better while ensuring that the youth have
access to education.

This bill also recognizes that motivation is a key factor in promoting produgtivity in our
workforce. Rewards are proven to be useful drivers of motivation and such additional
structured incentive may be expected to translate to effective personnel and efficient
operations.

In view of the foregoing, passage of this bill is earnestly sought.

RODRIGO A. ABELLANOSA.


Repubiic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SIXTEENTH CONGRESS
Third Regular Session

House Bi No.__6239

Introduced by Representative Rodrigo A. Abellanosa

AN ACT
REQUIRING ALL EMPLOYERS
TO PAY THEIR EMPLOYEES A 14™-MONTH SALARY OTHERWISE KNOWN AS
“THE 14™*MONTH SALARY LAW’

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

SECTION 1. This Act shall be known as the 14”-Month Salary Law.

SECTION 2. All employers are hereby required to pay all their employees, regardless of the
nature of their employment, a 14" -month salary every year, in an amount equivalent to the
13"-month pay.

SECTION 3. The existing 13"-month pay shall be released on or before June of every year
while the 14”-month salary shall be released on or before December of each year. Provided,
that the frequency of payment may be the subject of agreement between employer and
employee or any recognizedicollective bargaining agent of employees.

SECTION 4. The 14"-month salary, together with the 13"-month pay and other benefits,
shall be excluded from the computation of gross income. Provided however, that the total
exclusion shall not exceed eighty-two thousand pesos (P82,000)

SECTION 5. Implementing Rules and Regulations. The Secretary of Labor and Employment
shall promulgate the necessary rules and regulations for the effective implementation of this
Act.

SECTION 6. 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 7. Repealing Clause. All laws, orders, issuances, circulars, rules and regulations
or parts thereof, which are inconsistent with the provisions of this Act are hereby repealed or
modified accordingly


SECTION 8. Effectivity. This Act shall take effect following its publication in at least two (2)
newspapers of general circulation.

Approved,