Release of 13th month pay can’t be deferred — Roque

Employers cannot defer the release of 13th month pay to their employees under the law, presidential spokesperson Harry Roque said Monday.

Roque issued the statement after Labor Secretary Silvestre Bello III was criticized after he floated the possibility of allowing companies “in distress” not to pay out the mandatory benefit.

“The law has not been amended. That is the law. That is a mandatory provision of the Labor Code,” Roque said at a news conference in Malacañang.

“Pabayaan po nating pag-aralan ng DOLE [Department of Labor and Employment]. Pero sa aking tingin, hanggang magkaroon ng bagong batas ay baka hindi po iyan pupuwedeng ma-defer,” Roque said.

Under Presidential Decree 851, all employers are mandated to release the 13th month pay on or before December 24, regardless of the nature of the workers’ employment. 

The 13th month pay should be equivalent to 1/12 of an employee's basic annual salary.

However, the law’s implementing rules and regulations states that “distressed employers shall qualify for exemption” upon prior authorization by the Secretary of Labor.

Bello said the DOLE will have a dialogue this week with labor groups, employers groups, the Department and Trade and Industry to iron out details on what constitutes a company in distress to be entitled for an exemption. — RSJ, GMA News