DOLE: Release 13th month pay by Dec. 24
The Department of Labor and Employment (DOLE) are reminding all employers of their responsibility to release their workers 13th Month Pay on or before December 24, this year, in compliance with Presidential Decree No. 851 and its implementing rules and regulations.
PD 851, all employers are required to pay their employees 13th Month Pay, which is equivalent to one twelfth of their basic salary within the calendar year, not later than December 24 of every year.
“Basic salary” includes all remunerations or earnings paid by an employer to an employee for services rendered but does not include allowances and other monetary benefits which are not considered or integrated as part of the regular or basic salary, such as the cash equivalent of unused vacation and sick leave credits, overtime, premium, night differential and holiday pay, and cost of living allowances.
However, these salary-related benefits should be included as part of the basic salary in the computation of the 13th month pay if, by individual or collective agreement, company practice or policy, the same are treated as part of the basic salary of the employees, she added.
To ensure that all covered workers receive this benefit, all covered employers are required to submit a report of their compliance with PD 851 to the nearest DOLE Offices in their areas on or before January 15 of the succeeding year.
The DOLE has prescribed summary report form for employers to accomplish available at its regional and provincial offices.
