No Exemptions: DOLE Says Businesses Must Give Workers 13 Month Pay

MANILA – The Labor and Employment Department said Thursday that it would not defer or exempt any company from giving employees their 13th month pay, even as the coronavirus pandemic left companies in trouble.

Speaking at Laging Handa’s public briefing, Labor Secretary Silvestre Bello III said his agency would issue an order on the 13th month payment on Friday.

He had previously said that the rules and regulations for the application of the law exempt companies “in difficulty” from granting the mandatory benefit. Presidential Decree No. 851 orders the payment of this incentive every year.

Pressed on what the order would indicate, Bello said: “We will not postpone, we will not postpone and we will not give any exemption to the payment of the 13th month payment.”

“The law says pay workers their 13th month pay on or before December 24,” he added.

(That’s what the Department of Labor will implement.)

The DOLE is seeking permission from the finance department to help micro and small businesses give their workers their 13th month pay through government grants or loans, Bello said.

The labor department order to be released on Friday also covers requests from employers for the 6-month floating status extension of some workers due to the COVID-19 crisis, he said.

The pandemic has displaced some 3.5 million workers, Bello said.

DOLE is seeking alternative deployment markets for migrant workers and has been providing livelihood assistance, he said.