DOLE | 13th month pay

DOLE issues guidelines on payment of 13th month pay

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:

Who are entitled to 13th month pay

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.

Amount of 13th month pay

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.

When 13th month pay should be paid

The employer will pay the 13th month pay on or before 24 December 2020

No exemption or deferment

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 are required to report their compliance

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:

1. Name of business
2. Address
3. Principal product of business
4. Total employment
5. Total number of workers benefitted
6. Amount granted per employee
7. Total amount of benefits granted
8. Name, position and telephone number of person giving information

Need to talk to a lawyer?

If you need to consult a lawyer on how to comply with the Advisory, our Partner Lawyers are ready to help you.

Submit your legal question using our “Ask an Attorney” service and a lawyer will contact you within 3 business days to advise you.

Regards,

The Legal Tree team
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