DOLE issues advisory on the 13th month pay Created on November 20, 2012, 2:56 am Posted by nup

QUEZON CITY, Nov. 19 (PIA)--The Department of Labor & Employment (DOLE) issued an advisory to ensure the correct payment of the workers 13th month bonuses.

Labor & Employment Secretary Rosalinda Baldoz issued Department Advisory No. 02 reiterating Section 8 of Presidential Decree No. 851 which requires private sector employers to pay their employees their 13th month pay on or before December 24 of every year.

In a statement, Baldoz said that this early, workers are already expecting the payment of year-end benefits, including the 13th month pay.

The Labor Code of the Philippines requires all private sector employers to pay their rank-and-file employees a 13th month pay regardless of their position, designation, or employment status irrespective of the method by which their wages are paid, provided they have worked for at least one month during a calendar year.

The advisory defines 13th month pay as one twelfth (1/12) of the basic salary of an employee within a calendar year.

Based on the advisory, the formula for computing the 13th month pay is total basic salary earned during the year divided by 12 months.

It stated that basic salary includes all remunerations or earnings paid by an employer to an employee for services rendered.

The advisory also enumerates the allowances and monetary benefits not considered as part of the basic salary, such as the cash equivalent of unused vacation and sick leave credits, overtime pay, night shift differential pay, holiday pay, and cost-of-living allowance (COLA).

To ensure that no compromise will be done on the payment of the 13th month bonus, the advisory requires every covered employer to make a report of his compliance with the provision on the law on the 13th month pay to the nearest DOLE regional office not later than January 15 of each year.

The report will contain the name of the establishment, address, principal product or business, total employment, total number of workers benefited, amount granted per employee, and total amount of benefits.

The labor chief also encourages workers to report violation with regard to the compliance with the payment of the 13th month bonus to the DOLE Call Center at 527-8000, the Bureau of Working Conditions at tel. no. 527-3000 local 301 and 307, or the nearest DOLE Regional Office in their locality. (DOLE/RJB/SDL-PIA NCR)


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