Release 13th month pay before Dec. 24, DOLE reminds private sector employers

Private employers should pay their employees' 13th month pay by Dec. 24, the Department of Labor and Employment said Wednesday.

DOLE Secretary Rosalinda Baldoz, in issuing the reminder, said the 13th month pay is a requirement of the Labor Code.

“All employers are required to pay their rank-and-file employees the 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,” she said.

The 13th month pay is one-twelfth of an employee's basic salary in a calendar year.

While it includes remunerations or earnings paid by an employer to an employee for services rendered, it does not include:

“This year, the 24th of December falls on a Wednesday, so employers may pay their workers the 13th month benefit on this day, but I urge them to pay earlier to avoid the rush,” said Baldoz.

But she said employers may pay their employees one-half of their 13th month benefit before the opening of the regular school year in May or June; and the remaining half on or before December 24.

"If not paid after this date, the 13th month pay becomes due and demandable," she said.

Failure to pay

Employers who fail to pay the 13th month benefit are liable to money claim cases that may be filed with any DOLE regional office.

Also, employers are required to make a report of compliance to the nearest DOLE regional office not later than January 15 of each year.

“Once the DOLE receives a request for assistance (RFA) to resolve a non-payment of 13th month benefit, the RFA will be acted upon using the single entry approach (SEnA) mechanism of conciliation-mediation which is a very accessible, fair, non-litigious, and inexpensive dispute settlement system,” said Baldoz.  — Joel Locsin /LBG, GMA News