Manila: An official of the Department of Labor and Employment (DOLE) on Tuesday reminded private sector employers in the country of their obligation to grant the 13th month pay of their employees before Dec. 24.
According to Philippines News Agency, Director Alvin Curada of the DOLE-Bureau of Working Conditions (BWC) stated that Secretary Bienvenido Laguesma has already issued a reminder about the mandatory payment, which is to be made a day before Christmas Day. “Sec. (Laguesma) has already announced that as early as the beginning of Nov. and even the last week of Oct., reminded employers of their responsibilities to rank and file employees that they will be given the 13th month or the equivalent of 1/12 of their income for the whole year,” he said at the Bagong Pilipinas Ngayon public briefing.
The DOLE-BWC official noted that workers in private companies are entitled to the 13th month, as stated in the Labor Code of the Philippines and Presidential Decree 851. All rank and file employees must be paid regardless of their position, designation, or employment status, and irrespective of the method by which their wages are paid.
Also entitled to the benefit are rank-and-file employees who are paid on a piece-rate basis, fixed, or guaranteed wage plus commission; those with multiple employers; those who resigned; those who were terminated from employment; or those who were on maternity leave and received a salary differential.
For the computation of the 13th month pay, it should not be less than 1/12 of the total basic salary earned by a worker within a calendar year. The pay is legally required to be paid on or before Dec. 24th of each year; many companies release it earlier, often in November. Also, some firms give it in two installments, with one part given around June and the second in December.
On the other hand, Curada said workers who are not covered by 13th month pay are those who are working in the personal service of another, as well as those earning on a commission basis. “But for our workers who have a combined income in terms of commission plus wage, their wage part is entitled to the 13th month pay, we should just calculate how much they earn in a year, then 1/12 is their 13th month pay,” he explained.
