MSMEs in the Philippines told to ensure payment of 13th month pay
Silvestre Bello III, the Secretary of Labour and Employment, reminded employers that they are mandated by law to give their workers the 13th month pay.
He noted that many businesses are still struggling even as the economy is reopening. As such, the government will assist by granting loans through the Small Business Corporation (SB Corporation).
“So, with this loan facility from SB Corporation, there is no more reason to not give the 13th-month pay,” Bello said during the ceremonial launch of the loan programme with the Department of Trade and Industry and its financing arm, SB SB Corporation.
To qualify for the loans, micro and small enterprises must have implemented flexible work arrangements and registered under the DOLE Establishment Reporting System as of October 15.
The loan programme can cover up to 40 employees per establishment and the loanable amount is at PHP12,000 (US$240) per current employee. It is a zero-interest-rate, no-collateral loan that is payable in 12 months, inclusive of the three-month grace period.
As of November 12, a total of 25 loan applications amounting to PHP5.052 million (US$100,857) have already been approved by SB Corporation, according to Philippine News Agency