DOLE directs private companies to give 13th month pay by December 24
DOLE directs private companies to give
13th month pay by December 24
Department of Labor and Employment (DOLE) Secretary
Silvestre H. Bello III reminds companies to give employees their 13th
month pay on or before December 24.
Secretary Bello issued a Labor Advisory No. 28 s2020 dated October 25, 2021 regarding Guidelines on the Payment of the Thirteenth Month Pay.
Under the Labor Code, all rank-and-file workers regardless of the nature of their employment are entitled to receive their 13th month pay as long as they have rendered services for at least a month in 2021.
What is 13th Month Pay?
It is a mandatory benefit provided to workers under Presidential Decree No. 851 which requires employers to grant 13th month pay to all its rank-and-file workers.
It is equivalent to a month salary of the employee. The 13th month pay does not include other allowances or extra payment for employees who work overtime, for the nightshift or during the holidays.
Who are rank-and-file workers?
All employees NOT considered managerial employees
or non-management level employees are considered rank-and-file employees.
A managerial employee is one who is vested with
powers or prerogatives to lay down and execute management policies and/or to hire, transfer, suspend, lay-off, recall,
discharge, assign or discipline
employees, or to effectively
recommend such managerial actions.
How to Compute 13th Month Pay?
The minimum 13th month pay required by law shall
not be less than 1/12 of the total basic salary earned by an employee within a
calendar year. To illustrate:
Payment Date: The employer shall pay on or before December 24, 2021.
Companies are expected to submit a compliance
report by January 15, 2022.
Secretary Bello strongly encourages workers who
will not receive their 13th month pay to file a report at the
nearest DOLE Regional office.