Employers reminded of 13th month pay PDF Print E-mail
Tuesday, 26 November 2013 10:53

A top official of the Department of Labor and Employment (DOLE) has reminded the employer sector to give the 13th month pay of their employees.

DOLE-Zamboanga Peninsula’s Sisinio Cano issued the advice as the Christmas Season is fast-approaching. He stressed that giving of 13th month pay is mandatory under the law.

“The 13th month pay is released in two tranches, one-half in June and the other half in December. It is mandatory. The other bonuses depend on the company policy,” Cano said.

Cano said the payment of the 13th month pay should be released on or before December 24 of the year pursuant to the provisions of the Implementing Rules and Regulations (IRR) of Presidential Decree No. 851.

Cano also reminded the employers to submit a compliance report to the nearest DOLE office not later than January 15 of each year as stipulated in Section 8 of the IRR.

He said PD 851 states that all employers are required to pay their rank and file employees 13th month pay regardless of the nature of their employment and irrespective of the methods by which their wages are paid provided they worked for at least one month during a calendar year.

He said the 13th month pay shall not be less than one-twelfth of the total basic salary earned by an employee in a calendar year.

An employer, however, may give to his or her employees one-half of the 13th month pay before the opening of the regular school year and the remaining half on or before December 24 of every year.

“We are calling the employers in the private sector to comply with this regulation (PD 851). Firms are required to report to DOLE their compliance,” he said, adding those that do not comply will be penalized. — RGAAG