THE business chambers in Cebu province want to leave it to businesses whether they will release early the 13th month pay to workers or not.
Cebu Chamber of Commerce and Industry president Felix Taguiam said businesses are now facing a tough challenge especially since they are also losing revenues.
“As for the government’s request to employers releasing partial or full the 13th month pay to their employees, it remains to be a prerogative assistance of each company. Although this will be of great help aside from any assistance extended by respective companies, it will still depend on each company’s capability,” he said.
He said every company has implemented belt tightening measures to cope with the impact of the Covid-19 global outbreak. He noted that payment of corporate income tax to the Bureau of Internal Revenue is also drawing near, adding to the operational expenses of the company.
The 13th month pay is a mandatory financial obligation of every employer to its rank and file employees. Companies and agencies usually release this in December.
President Rodrigo Duterte earlier requested companies to consider paying the 13th month pay as one way to help workers survive these trying times and weather the disruptions in their livelihood caused by the coronavirus pandemic.
On Monday, March 16, Duterte placed Luzon under “enhanced community quarantine.” The province of Cebu, on the other hand, is under community quarantine.
Steven Yu, Mandaue Chamber of Commerce and Industry president, said the early release of the 13th month pay is a voluntary measure on the part of the employer.
“If the workers are qualified under the no work, no pay classification, and the company has temporarily suspended operations, then out of humanitarian considerations, the concerned company can opt to give out the pro-rated 13th month pay which has accrued to the concerned employee,” he said.
Yu added the act will be fair and compassionate.
“When the situation becomes better, you can expect more loyalty from your employees, and you will feel good that you have helped someone in times of distress and extreme need,” he said.
A construction company, whose owner requested anonymity, said his company is willing to release the 13th month pay if the need arises.
The company, which employs about 400 workers, has provided free personal protective equipment especially face masks, hygiene materials like alcohol and soap, vitamins and antiseptic oral solutions for their employees.
“Since our client needs our manpower to be always on site, what we can do is just to prepare and follow the guidelines given by our general contractor and the Department of Health,” the business owner told SunStar Cebu.
The company has also prepared funds for the 13th month pay, pre-packed goods for each employee if ever the community quarantine becomes more strict, provided information materials about Covid-19 in its project sites and promoted daily hand washing and disinfection.