Employers Reminded for the 13th Month Pay of Emoployees - Mandatory

Don't fret over your 13th month pay, the Department of Labor and Employment (DOLE) told Filipinos Monday, noting that it will "brook no compromise when it comes to workers' rights."

DOLE has recently released Department Advisory No. 2 Series of 2012, which reiterates guidelines on giving 13th month pay on or before Dec. 24 of every year.

"All wage and salary workers are entitled to the 13th month pay as mandated by law," Labor Secretary Rosalinda Baldoz said in a statement.

"This early, workers are already expecting the payment of year-end benefits, including the statutory 13th month pay, so the reminder to all employers to comply with the payment of the 13th month pay is timely," she added.

The advisory also noted that 13th month pay should be equivalent to a twelth of the basic salary an employee receives within a calendar year.

However, it does not include allowances and monetary benefits not considered part of the basic salary such as overtime pay, night shift differential pay, holiday pay, and cost of living allowance.

"All private sector employers [must] pay their rank-and-file employees a 13th month pay regardless of their position, designation, or employment status," the DOLE statement said.

The pay should also apply "irrespective of the method by which their wages are paid, provided they have worked for at least one month during a calendar year," it added.

Employers have also been reminded to submit reports of compliance on the 13th month pay provision of labor laws on or before Jan. 15 every year.

Meanwhile, workers have been urged to report violations by contacting the Labor department or visiting the nearest Labor offices in their area.
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