Department of Labor and Employment (DOLE) said Friday that only the businesses categorized as micro and small would be granted assistance should the government subsidize the 13th-month pay for workers.
Labor Secretary Bello III said that companies who would like to apply for the government subsidy should be either a “micro or small business establishment tapos nalulugi sila.”
Micro and small businesses must indicate their losses during the period covered upon their application.
Asked if medium enterprises could also apply for the 13th-month pay subsidy, Bello said, “Hindi na siguro.”
“Maganda-ganda ang kanilang katayuan ito ‘yung mga umaabaot sa P100 million ang capitalization nila… [so] hindi na siguro, micro na lang tsaka small,” Bello said.
An enterprise is considered “micro” if its asset size is at least or below P3,000,000, with only one to 9 employees.
Meanwhile, a business with an asset size ranging between P3,000,001 and P15,000,000 with 10 to 99 workers is considered “small.”
A “medium” business has P15,000,001 to P100,000,000 asset size with 100 to 199 employees.
The Department of Trade and Industry data showed that MSMEs account for 99% of business enterprises.
The MSME sector also accounts for more than 60% of the country’s total employment.
13th month pay subsidy for micro, small businesses only – DOLE
The DOLE chief said Thursday that all employers are mandated to pay 13th month pay on or before December 24, ending the issues surrounding workers’ financial benefit.
“We will not postpone, we will not defer, and we will not give any exception to the payment of the 13th month pay,” Bello said.
Bello said the government would either give subsidy or create a loan facility for distressed companies to comply with the labor standard.
If the data of DOLE is followed, around P5 billion is needed to aid 1.3 million workers affected.
But if the Philippine Statistics Authority’s data is followed, about 5.5 million workers are affected by the pandemic, and the government would need P13.7 billion for the subsidy.
Presidential Decree No. 851 requires employers from the private sector to pay their rank-and-file employees a 13th month pay not later than December 24 every year.