DOLE issues Labor Advisory No. 28 on payment of 13th month pay, including prohibiting any exemption or deferment from payment thereof
The Department of Labor and Employment (“DOLE”) recently issued Labor Advisory No. 28 series of 2020 (“Guidelines on the Payment of Thirteenth Month Pay”) (“Advisory”) providing as follows:
The Advisory provides that all rank-and-file employees in the private sector will be entitled to 13th month pay regardless of their position, designation, or employment status, and irrespective of the method by which their wages are paid, provided they have worked for at least 1 month during the calendar year.
The minimum 13th month pay will not be less than 1/12 of the total basic salary earned by an employee within a calendar year.
The minimum amount will be provided without prejudice to existing company practice and policy, employment contract or collective bargaining agreement, if any.
The employer will pay the 13th month pay on or before 24 December 2020
No request or application for exemption from payment of 13th month pay, or for deferment of the payment thereof will be accepted and allowed
Employers will report their compliance to the nearest DOLE Regional Office not later than January 15 of the following year. The report will conform substantially with the following:
If you need to consult a lawyer on how to comply with the Advisory, our Partner Lawyers are ready to help you.
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The Legal Tree team
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