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Malacanang said on Tuesday that the government would not subsidize the 13th month pay for workers employed by micro and small enterprises.

"It's clear, it's been studied - we don't have any source for the subsidy," said Presidential Spokesperson Harry Roque in a televised press briefing.

Since the 13th month pay is mandatory, he said the government could just help the micro and small businesses to secure loans from various sources, such as the rural banks.

He said P10 billion loan would be extended to these businesses. Celerina Monte/DMS