PB OKs P45M budget for Capitol bonuses

CEBU, Philippines — The Cebu Provincial Board yesterday passed the P45 million Supplemental Budget Number 2 needed to fund the yearend bonuses of Capitol’s over 2,000 regular and casual employees.

The resolution sponsored by Board  Member  Glenn  Soco, chairman of the Committee on Budget and Appropriations, was approved on first, second, and third reading in less than five minutes just before the provincial legislative body will go on a Christmas break.

With the approval of the budget, Capitol employees are now assured of bonuses amounting to P25,000 each. This is broken down as 15,000 Collective Negotiation Agreement (CNA) and P10,00 Service Recognition Incentive (SRI).

Meanwhile, the Department of Labor and Employment-7 announced that the 13th month pay should not be confused with Christmas bonus.

DOLE-7 director Salome O. Siaton, in a statement, said that while the two have similarities, both come in monetary form and are given out by employers, the 13th month pay is the one that is mandatory as provided for under P.D. 851 and failure to comply with it is a violation.

“Christmas bonus or company bonus as others may refer it is optional and voluntary in nature, which is actually up to management’s discretion whether to give it out or not,” said Siaton.

On the other hand, workers, who have rendered work in a certain company for at least one month during the calendar year, are entitled to a 13th month pay and it should be paid to workers on or before December 24 of every year.

Unlike the 13th month pay, Christmas bonus may or may not be given out to workers and the provision of which is most of the time credited to management’s generosity or its intention to motivate workers.

"The same could be actually given out to workers throughout the year but is typically handed to the workers every December, thus the name,” she said.

Siaton added that the 13th month pay should be paid to all rank-and-file employees regardless of the nature of their employment and irrespective of the methods by which their wages are paid.

She said, however, that workers holding managerial positions are not entitled to it.

“A managerial employee is one who has the power to lay down and execute management policies and to hire, transfer, suspend, layoff, recall, discharge, assign or discipline employees or even to effectively recommend such managerial actions,” Siaton explained.

The 13th month pay shall not be less than one-twelfth of the total basic salary earned by the employee within a calendar year.

Also covered by the payment of the 13th month pay are household helpers or kasambahay. (FREEMAN)