As many Filipinos anticipate Christmas, the Department of Labor and Employment-Regional Office 1 has issued a reminder for employers regarding the payment of their workers’13th month pay.
Regional Director Nathaniel V. Lacambra said that Presidential Decree 851, or the 13th Month Pay Law, mandates all covered employers to pay their employees the 13th month pay, which is one twelfth of the basic salary of an employee within a calendar year.
Director Lacambra said that employers should release the mandatory benefit not later than December 24. However, one-half of the 13th month pay may be given before the opening of the regular school year and the remaining half on or before December 24 of every year.
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”.
“Rank-and-file employees in the private sector shall be entitled to 13thmonth pay regardless of their position, designation, or employment status, and irrespective of the method by which their wages are paid, provided that they have worked for at least one month during the calendar year,” the Regional Director said.
The advisory also requires every covered employer to make a report of compliance with the law to the nearest Regional Office not later than January 15 of following year. The report shall contain the following: 1) name of establishment; 2) address; 3) principal product or business; 4) total employment; 5) total number of workers benefited; 6) amount granted per employee; 7) total amount of benefits granted; and 8) name, position, and telephone number of person giving information.
“We urge all employers to pay their obligation to their workers not only because it is mandated by law, but because it is the season of giving,” Director Lacambra said. – Arly Sta. Ana-Valdez
Last Updated on February 21, 2022 by lopezhn