DOLE reminds employers of workers’ 13th month pay

CEBU, Philippines — The Department of Labor and Employment yesterday reminded employers to pay the 13th month pay of their workers.

DOLE regional director Cyril Ticao said the influx of questions and clarifications regarding Presidential Decree 851 is getting noticeable by each day especially that the holiday season is here.

Otherwise known as the Thirteenth Month Pay Law, it requires all employers in the private sector to pay their rank-and-file employees a 13th month pay on or before December 24 of every year.

It could also be released to workers twice a year – one half of the 13th month pay before the opening of the regular school year and the remaining half on or before Dec 24.

DOLE said the 13th month pay shall be the one-twelfth (1/12) of the basic salary of an employee within the calendar year.

Ticao said the basic salary includes all remunerations or earnings paid by an employer to an employee for services rendered but may not include cost-of-living allowances, profit-sharing payments, cash equivalent of unused vacation and sick leave credits, overtime pay, premium pay, night shift differential, holiday pay, and all allowances and monetary benefits which are not considered, or integrated, as part of the regular or basic salary of the employee.

“We are reminding employers to give the workers what is due them. The payment of the 13th Month Pay is something that should not be compromised. Employers are even mandated to render report of their compliance to us,” Ticao said in a statement.

Pursuant to Labor Advisory 12, Series of 2013, covered employers shall make a report of their compliance with the law to the nearest DOLE regional office not later than Jan. 15 of each year indicating the name of establishment; address; principal product or business; total employment; total number of workers benefited; amount granted per employee; total amount of benefits granted; and the name, position, and telephone number of person giving information.

“We would like to clarify that all rank-and-file employees in the private sector are entitled to said payment regardless of their position, designation, or employment status (regular or not) and irrespective of the method by which their wages are paid (monthly, daily, pakyaw, etc.), provided they have worked at least one month during the calendar year,” he said.

The formula to follow for the computation would be the total basic salary earned during the year divided by twelve months.

The result would be the proportionate 13th month pay. (FREEMAN)