Filipino employees may soon have more reasons to look forward to payday.
Senate Minority Leader Vicente “Tito” Sotto III has filed Senate Bill 193, which seeks to require private employers to give workers a 14th month pay, on top of the existing 13th month pay.
Photo: Unsplash
Currently, employees are entitled to one month’s equivalent salary under Presidential Decree 851, otherwise known as the 13th month pay, which is usually released no later than December 24.
Under the new bill, the schedule will change:
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13th month pay → to be released no later than June 14
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14th month pay → to be released on or before December 24
That means employees would essentially get two “bonus” salaries each year, one mid-year and one just in time for the holidays.
Sotto explained that the cost of living has drastically changed since the 13th month pay law was enacted in the late 1970s. With rising prices of goods and services, he said, “it is high time that employees in the private sector receive their 14th month pay.”
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Who Will Benefit?
If passed into law, the 14th month pay will cover:
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Rank-and-file private sector employees
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Domestic workers under the Kasambahay Law
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Other workers already entitled to a 13th month pay
Just like the 13th month, the 14th month pay will be equal to one-twelfth of the employee’s annual basic salary.
For example, an employee earning ₱250,000 annually would get at least ₱20,833 each for their 13th and 14th month pay — about ₱41,666 extra in total.
Are There Exemptions?
Yes. Certain employers won’t be required to provide a 14th month pay, such as:
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Distressed companies with heavy financial losses
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Non-profit institutions with more than 40% income decline
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Government agencies
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Employers already giving 14th month pay or higher benefits
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Workers who are paid purely on commission, boundary, or task basis
The Bigger Picture
This proposal comes alongside ongoing discussions on wage hikes. Both the Senate and the House of Representatives have refiled bills aiming to increase minimum wages (₱100–₱200), but previous versions never made it past committee deliberations.
If this measure moves forward, it could mean a big financial relief for millions of Filipino workers who are struggling with inflation and rising household expenses.
What do you think? Should the 14th month pay finally be made mandatory? Would it help stretch your budget, or will companies just find loopholes around it?
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