DOLE to employers: Release 13th month pay of workers

THE Department of Labor and Employment-Regional Office I (DOLE-RO1) reminded all employers in the region to release the 13th month pay of their workers not later than December 24.

Citing the provision of Presidential Decree No. 851 or the 13th Month Pay Law, DOLE-RO I Regional Director Nathaniel Lacambra said the employers must comply with the law.  

The law mandates employers to pay their rank-and-file employees their 13th month pay, which is one-twelfth of the basic salary they earned within a calendar year, not later than December 24. Half of the mandatory benefit may be given before the opening of the regular school year and the remaining half on or before the specified date.

“Employers must think of the Christmas season as an opportunity to give back to their workers by fulfilling their legal obligation to them,” Lacambra said.

PD 851 defines basic salary as “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”.

All rank-and-file employees are entitled to a 13th month pay regardless of their designation or employment status, and irrespective of the method by which their wages are paid, provided they have worked for at least one month during a calendar year, Lacambra said in a news release.

Employers are required to submit their report of compliance with the law not later than January 15 of each year, added Lacambra’s statement. (PhilStar Wire Service)

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