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The Department of Labor and Employment (DoLE) has issued guidelines on issuing the 13th month pay to all grassroots employees in the private sector.
The Secretary of Labor Silvestre Bello 3º issued Labor Advisor 28 over the weekend to assure private sector workers, in particular micro and small business employees (MIPYE), that they would receive their thirteenth month as required by law .
“No request or request for exemption from payment of the payment of the thirteenth month, or deferral of payment of the same, will not be accepted or allowed,” read the guidelines.
Article 5 of the Labor Code requires private sector employers to grant their base employees a 13-month pay, regardless of their position, designation or employment status.
According to the guidelines, the benefit should be granted regardless of the method by which workers’ wages are paid, provided they have worked for at least one month during the calendar year.
Bello explained that the minimum pay of 13 months required by law will not be less than one twelfth of the total basic salary earned by an employee within a calendar year.
The thirteenth month pay calculation is the total basic salary earned during the year divided by 12 months, equal to the proportional pay for the thirteenth month.
Payment for the thirteenth month is due to employees on or before December 24.
The law also requires all covered employers to submit a compliance report to the nearest DoLE regional office no later than January 15 of each year.
Bello previously said that MSMEs unable to pay the 13th month payment due to Covid-related issues would receive government assistance in cash or through a line of credit from banks so that they can meet their obligations to their workers.
He also noted that the grant application would be subject to an evaluation process to determine if the company is really in trouble.
“Micro and small businesses must show that they are really losing money,” he further said.
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