DOLE issues guidelines on grant of 13th month pay

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MANILA – The Department of Labor and Employment (DOLE) on Monday has issued guidelines for the payment of 13th month pay of regular employees in the private sector.

In Labor Advisory No. 23, Labor Secretary Bienvenido Laguesma reminded the employers and provided the computation of the mandatory benefit for workers.

Under the guidelines, the minimum amount of 13th month pay shall not be less than one-twelfth (1/12) of the total basic salary earned by an employee within a calendar year.

“To illustrate: Total basic salary earned during the year/12 months = proportionate 13th month pay. Using the minimum wage in the National Capital Region at PHP570 per day and a six-day workweek or an equivalent Monthly Basic Salary of PHP14,867.50 (PHP570.00*313/12 months). PHP172,140/12 months = PHP14,345 is the proportionate 13th month pay,” the DOLE added.

Rank-and-file employees in the private sector who have worked for at least one month during the calendar year are entitled for a 13th month pay, regardless of their position, designation, or employment status, and irrespective of how their salaries are paid.

The benefit should be paid on or before December 24, it said.

“Compliance with the 13-month pay shall be enforced by the appropriate DOLE Regional/Field/Provincial Office having jurisdiction over the workplace in accordance with the prescribed rules and regulations,” it added.

The order also mentioned that there will be no exemption or deferment in giving the mandated employees’ bonus.

“No request or application for exemption from payment of 13th month pay, or for deferment of the payment thereof shall be accepted and allowed,” it added.

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