DOLE to employers: Give 13th-month pay on or before Dec. 24

By: 10 years ago

Labor Secretary Rosalinda Baldoz. INQUIRER FILE PHOTO

MANILA, Philippines—The Department of Labor and Employment (DOLE) directed private sector employers to release the 13^th-month pay of their employees on or before December 24, pursuant to the Labor Code of the Philippines.

In a statement, labor secretary Rosalinda Baldoz said Wednesday that employers are duty-bound to pay their employees their 13^th-month pay.

“All employers are required to pay their rank-and-file employees the 13th month pay, regardless of the nature of their employment, and irrespective of the methods by which their wages are paid, provided they worked for at least one month during a calendar year,” Baldoz said.

Baldoz said that giving 13^th-month pay to employees would foster “good labor-management relations, increased workers’ and enterprises’ productivity and competitiveness” in the workplace.

The 13^th-month pay constitutes one-twelfth (1/12th) of the basic pay received by an employee in a calendar year.

According to Baldoz, the basic salary includes all earnings paid for services rendered. However, it may not include cost-of-living allowances, profit-sharing payments, cash equivalents of unused vacation and sick leave credits, overtime pay, premium pay, night shift differential pay, holiday pay, and all allowances and monetary benefits, which are not considered part of the employee’s basic pay.

Employers may opt to give one-half of the 13^th-month pay on May or June and the other half on or before December 24.

Employees who will not receive their 13th month pay can file money claim cases against their employers before any DOLE regional office before January 15, 2015.