Employers reminded to give 13th-month pay
MANILA, Philippines—Labor Secretary Rosalinda Baldoz has reminded employers about the timely release of the 13th-month pay of their workers.
Baldoz issued the reminder in Department Advisory 2, series of 2012, which spells out the guidelines on the payment of the 13th-month pay.
“All wage and salary workers are entitled to the 13th-month pay as mandated by law,” she said. “This early, workers are already expecting the payment of yearend benefits, including the statutory 13th-month pay.”
“The 13th month pay is a core labor standard and the Department of Labor and Employment will not compromise on its payment by the employers to their workers,” Baldoz emphasized.
The Labor Code of the Philippines requires all private sector employers to pay their rank-and-file employees a 13th-month pay regardless of their position, designation, or employment status irrespective of the method by which their wages are paid, provided they have worked for at least one month during a calendar year.
Department Advisory No. 02 reiterates Section 8 of Presidential Decree No. 851, which requires private sector employers to pay their employees their 13th-month pay on or before December 24 of every year.
The advisory defines 13th-month pay as one-twelfth of the basic salary of an employee within a calendar year.
It also explains “basic salary,” which includes all remunerations or earnings paid by an employer to an employee for services rendered. The formula for computing the 13th-month pay is total basic salary earned during the year divided by 12 months.
It does not include, however, allowances and monetary benefits not considered as part of the basic salary, such as the cash equivalent of unused vacation and sick leave credits, overtime pay, night shift differential pay, holiday pay, and cost of living allowance.
The advisory requires every covered employer to make a report of his compliance with the provision on the law on the 13th-month pay to the nearest DOLE regional office not later than January 15 of each year.
In urging compliance with the payment of the 13th-month pay, Baldoz encouraged workers to report any violations to DOLE.
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