The Department of Labor (DOLE) in the Philippines through Labor Secretary Rosalinda Baldoz reminded employers in the private sectors to give the 13th month pay to their employees on or before Christmas Day in Decemeber 25, 2014. According to the Cabinet member, the 13th month pay is a general standard practice in the Philippines.
According to the DOLE Secretary, 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 at least one month during a calendar year.
DOLE also clarified that the 13th month pay is defined as one-twelfth (1/12) of the employees’ basic salary in a calendar year. The basic salary includes all renumerations or earnings paid by an employer to an employee for services rendered.
The basic salary in the Philippines,, may not include cost-of-living allowances (COLA), profit-sharing payments, cash equivalents of unused vacations and sick leave credits, overtime pay, premium pay, night shift differential pay, holiday pay, and all allowances and monetary benefits which are not considered as part of the basic pay.
In an announcement released by the DOLE Secretary she was quoted as saying “The 13th month pay must be paid on or before 24 December of every year. This year, the 24th of December falls on a Wednesday, so employers may pay their workers the 13th month benefit on this day, but I urge them to pay earlier to avoid the rush,” Baldoz said.
The 13th month pay could be paid by employers by half, they must provide the first half of the 13th month pay before the opening of the regular school year in May or June while the remaining half should be given on or before December 24. If the 13th month pay will not be provided by the company, it becomes due and demendable.
The DOLE also advised that if employers could not give the intended 13th month pay, employees can file a case with any DOLE regional office.
