MANILA, Philippines — Employers in the private sector have been ordered to release the 13th-month pay of their workers on or before Dec. 24.
In an advisory signed by Labor Secretary Francis Tolentino, the Department of Labor and employment (DOLE) outlined guidelines for paying 13th-month pay as provided under Article 5 of the Labor Code and Presidential Decree No. 851.
The advisory covers all rank-and-file employees regardless of their employment status and position or method of wage payment, provided they have rendered at least one month of service during the calendar year.
Under the guidelines, the minimum 13th-month pay must be equivalent to one-twelfth of an employee’s total basic salary earned during the calendar year.
For piece-rate workers, total earnings from their production or output will serve as the basis for computation. Commissions are excluded if these are not considered part of an employee’s basic salary.
Workers who resigned or were terminated before the end of the year are entitled to a proportionate 13th-month benefit based on their earnings during their employment.
Compliance with the payment requirement will be monitored by the DOLE regional, field and provincial offices with jurisdictions over the workplace.
Employers were told to observe the prescribed payment guidelines and ensure that qualified workers receive the benefit within the deadline.