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Employers told: pay the workers with 13th month pay

Cebu City, Philippines. All employers are required to pay their workers with Thirteenth-Month Pay on or before December 24 of every year, said Labor and Employment Regional Director, Atty. Johnson G. Cañete in a statement.

“Thirteenth-Month Pay should be paid to all rank-and-file employees regardless of the nature of their employment and irrespective of the methods by which their wages are paid,” said Atty. Cañete.

It means, he added, that workers holding managerial positions are not entitled to Thirteenth-Month Pay.

“A managerial employee is one who has the power to lay down and execute management policies and to hire, transfer, suspend, layoff, recall, discharge, assign or discipline employees or even to effectively recommend such managerial actions,” he said. All employees not falling within such definition, he noted, are considered rank-and-file employees and are entitled to Thirteenth-Month Pay.

The basic salary of workers is the basis for the computation of the Thirteenth-Month Pay, which means one twelfth (1/12) of the basic salary of an employee within the calendar year.

Thirteenth-Month Pay may not include the following, namely: cost-of-living allowances (COLA); profit-sharing payments; overtime pay; premium pay; night shift differential; holiday pay; and all allowances and monetary benefits which are not considered, or integrated as part of the regular or basic salary of the employee.

“We would just want to make things clear and defined insofar as the computation of Thirteenth-Month Pay is concerned. It is very simple to compute because all one needs to do is just sum up the actual basic salary he or she received for each month during the calendar year and then divide the total by 12 months,” explained the DOLE-7 Head.

He clarified that all Rank-and-File workers, provided that they have worked for at least one (1) month of the calendar year, should be able to receive Thirteenth-Month Pay.

“We are reminding the employers of their obligation to pay all their rank-and-file employees with Thirteenth Month Pay not later than December 24,” said the Regional Director.  However, he clarified that an employer may give his or her employees one-half (1/2) of the Thirteenth Month Pay before the opening of the regular school year and the remaining half on or before December 24 of every year.

He emphasized that also covered by the payment of the Thirteenth Month Pay are household helpers or Kasambahay.

 

 

End//LSenarlo-Taniza

For more information on this report, you may contact Luchel Senarlo-Taniza, Regional Labor Information Officer at telefax number (032) 266-2792 or you may send an email at dole_centralvisayas@yahoo.com

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2018-12-05
ATTY JOHNSON CAƑETE
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