The Department of Labor and Employment (DOLE) issued Advisory No. 28 series of 2020 entitled “Guidelines on the Payment of 13th Month Pay.”
This is pursuant to Article 5 of the Labor Code of the Philippines, Presidential Decree No. 851 requiring employers in the private sector to pay their rank-and-file employees 13th Month Pay.
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PDF Copy of the DOLE Guidelines on 13th Month Pay
Rank-and-file employees in the private sector shall 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 that they have worked for at least one (1) month during the calendar year.
Amount of the 13th Month Pay
The minimum 13th month pay required by the law shall not be less than one-twelfth (1/12) of the total basic salary earned by an employee within a calendar year. To illustrate:
This minimum amount shall be provided without prejudice to existing company practice and policy, employment contract or collective bargaining agreement if any.
Time of Payment
The employer shall 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 shall be accepted and allowed.
Report of Compliance
Employers shall make a report of their compliance with the law to the nearest Regional Office not later than January 15 of the following year.