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Employers in Bicol reminded to give 13th month pay on time



DOLE RO V Regional Director Alvin M. Villamor urges employers to pay the 13th month pay of their workers during the Labor Management Forum.

Legazpi City - The Department of Labor and Employment (DOLE) RO V reminded employers to pay the 13th month pay of their workers on time and not later than December 24.

“We are reminding all private employers to release the 13th month pay of your workers on or before December 24,” said Atty. Alvin M. Villamor, DOLE RO V regional director.

According to Labor Law, the 13th month pay shall be the one-twelfth (1/12) of the basic salary of an employee within the calendar year.

He said that 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 which their wages are paid, provided they worked for at least one month in a year.

“Your workers must receive it in cash, and not in other forms such as groceries or sacks of rice. If there are instances of this kind of distribution in your company, then it’s not your 13th month pay; it’s probably Christmas bonus or other bonuses or incentives from the company,” said Villamor.

The basic salary includes all remunerations or earnings paid by an employer to an employee for services rendered, but does not include cost-of-living allowances or COLA, profit-sharing payments, cash equivalents of unused vacation and sick leave credits, overtime pay, premium pay, night differential pay, holiday pay, and all allowances and monetary benefits integrated as part of the regular or basic salary of the employee.

“Employers are also required under the Labor Code to make a report of compliance with PD No. 851 to DOLE regional and provincial field offices not later than January 15, 2019,” he noted.

Villamor added that the report indicates the name of establishment; address; principal product or business; total employment; total number of workers benefited; amount granted per employee; total amount of benefits granted; and the name, position, and telephone number of persons giving information.

Labor laws and their implementing rules and regulations mandate the payment of the 13th month pay which is computed as total basic salary x number of months employed in the year ÷ 12 months = 13th month pay.

In addition, for those employees who have resigned or whose services are terminated at any time before the time of payment of the thirteenth-month pay is entitled to this monetary benefit in proportion to the length of time he or she has worked during the year, reckoned from the time he or she has started working during the calendar year up to the time of his or her resignation or  termination from the service.

Thus, if he or she worked only from January to September, his or her proportionate thirteenth-month pay should be equal to one-twelfth (1/12) of his or her total basic salary earned during that period.


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