DOLE: Employers must release 13th-month pay by Christmas Eve
MANILA, Philippines — Private employers should pay employees their 13th-month pay on or before December 24, the Department of Labor and Employment (DOLE) said.
In a statement on Monday, December 1, the labor department reminded employers to release the mandated 13th-month pay on time, especially as the holiday season reaches its peak. It is a non-negotiable right for Filipino workers, DOLE Secretary Bienvenido Laguesma said.
“The 13th-month pay is a statutory right of workers. Employers must ensure timely and full compliance, as this benefit is crucial in supporting Filipino families during the holiday season,” he added.
The 13th-month pay amounts to at least one-twelfth of an employee’s yearly salary, or roughly one month’s basic pay, and is given at the end of the year without deductions for taxes or contributions.
According to DOLE, the basic salary used to compute 13th-month pay excludes overtime, night shift differential, holiday pay, unused leave credits and cost-of-living allowances. These would only be included if a company’s policy explicitly considers them part of the basic salary.
All rank-and-file employees in the private sector should receive their 13th-month pay, regardless of their position, employment status or how they were paid, so long as they have worked for at least one month during the calendar year, DOLE said.
The labor department does not permit delays or exemptions for 13th-month pay, which is required by law to be released by Christmas Eve at the latest.
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