ON MONDAY, a House Bill was filed seeking to make 14th month pay mandatory in the private sector, aiming to help workers cope with the continuous increase in prices of essential goods and services.

As Filipino workers strive to make ends meet amid ongoing inflation, the Philippine government aims to ease their burden through a House Bill that would require the annual distribution of 14th month pay.

The 13th month pay, established under Presidential Decree 851 in the late 1970s, grants employees at least one-twelfth of their yearly basic salary. Similarly, the proposed 14th month pay would be of the same amount.

House and Senate Efforts

House Bill 3808, introduced by Trade Union Congress of the Philippines (TUCP) party-list Rep. Raymond Mendoza, suggests that the 13th month pay be distributed to private workers by June 24th, and the 14th month pay by December 24th.

“Today, Filipino workers and their families continue to suffer from starvation poverty wages with most, if not all, regional minimum wages which fall below the government-set poverty threshold and no way near the family living wage,” the explanatory note reads.

“As well as persistent underemployment reflected in the fact that millions who have a job are still seeking another job or additional hours of work,” the note went on to say.

Senate Minority Leader Vicente “Tito” Sotto III earlier filed Senate Bill 193, similar to its House counterpart, on July 7, 2025. In a Sunday statement, Sotto said the 13th month pay is no longer enough to keep up with rising prices of basic goods and services.

“After almost five decades, the needs and cost of living of every Filipino worker have drastically changed, thus it is high time that employees in the private sector receive their 14th month pay,” he said.

Exemptions from the Bill

Some employers will be exempted, including those considered “distressed” or facing significant losses, and non-profit groups whose income has dropped by over 40% compared to their usual earnings over the past two years.

These exemptions require approval from the Department of Labor and Employment (DOLE). Employers of workers paid purely on commission, boundary, or task basis are also not obligated to provide 14th month pay under the bill.

“These exemptions prove that we heed the concerns of employers, especially those who are struggling. But let us be clear: when workers receive more and better benefits, they are not only happier but more motivated and productive at work,” Mendoza said.

“And when productivity rises, so does profitability. Working families become more comfortable as businesses and the economy grow stronger,” he went on to explain in a statement.

With that, the bill will go through three readings in the House. If approved, it will move to the Senate—unless the Senate has already passed it, in which case it proceeds directly to the President for final approval.