DOLE reminds employers: Workers have right to 13th month pay

CEBU, Philippines - Employers in the private sector are required to pay their rank-and-file employees the 13th month pay.

This was reiterated by the Department of Labor and Employment-7 amidst queries it has been receiving regarding the payment of 13th month to employees.

DOLE-7 acting regional director Exequiel Sarcauga said regardless of the employees’ position, designation, or employment status, and irrespective of the method by which their wages are paid, provided that they have worked for at least one month of the calendar year, all rank-and-file employees in the private sector are entitled to the 13th month pay.

“The basic salary will include all remunerations or earnings paid by an employer to an employee for services rendered, but may not include some incentives and benefits,” he explained.

The 13th month pay, Sarcauga said, may not include Cost of Living Allowance, profit-sharing payments, 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.

Reminding the employers of their obligation, Sarcauga stressed that the 13th month pay shall be paid not later than December 24 of every year.

However, he clarified that an employer may give his or her employees half of the 13th month pay before the opening of the regular school year and the remaining half on or before December 24 of every year.

Sarcauga emphasized that also covered by the payment of the 13th month pay are household helpers or kasambahays.

Every covered employer shall make a report of his or her compliance with the law to the nearest DOLE regional office not later than January 15 of each year. —Mitchelle L. Palaubsanon/ATO (FREEMAN)