Senate Minority Leader Vicente “Tito” Sotto III has filed a bill that would require private sector employers to provide a 14th month pay to their employees, supplementing the existing 13th month pay. The proposal aims to help Filipino families cope with rising costs, particularly educational expenses.

Sotto noted that the current 13th month pay, mandated by Presidential Decree No. 851 in 1976, no longer reflects the modern cost of living. “After almost five decades, the needs and cost of living of every Filipino worker have drastically changed. It is high time employees in the private sector receive their 14th month pay,” he said.

Under the proposed measure, the 13th month pay would continue to be released by 14 June, assisting families with school-related expenses. The new 14th month pay would be disbursed no later than 24 December to help workers cover holiday and year-end costs.

Sotto emphasized that the bill includes exemptions to avoid placing undue burden on struggling businesses. Distressed companies, non-profit organizations experiencing major income declines, and employers already providing a 14th month pay or equivalent benefits would not be required to grant the additional pay.

The proposed law would apply to all private sector rank-and-file employees, workers under the Kasambahay Law, and others currently entitled to the 13th month pay, provided they have worked at least one month during the calendar year.