NextGen Day

To guarantee that employees receive the required 13th-month compensation, the Department of Labor and Employment (DOLE) must work with local government units (LGUs).

Senator Raffy Tulfo recommended to Assistant Secretary Lennard Serrano that the DOLE and LGUs draft a contract requiring employers or businesses to provide documentation proving they had paid the 13th-month bonus before their business permits were renewed.

“Balewala ang mga advisory na iyan, if you’re not already aware of it. The 13th month’s compensation is due to them right now. I don’t think you can maipatupad, batas na nga iyan. Media warnings are ineffective unless they result in consequences, so beware. To them, the 13th month’s compensation is insignificant. Despite being a lawyer, they are unable to enforce it. At the joint committee hearing of the Labor, Employment and Human Resources Development; Social Justice, Welfare and Rural Development; and Finance, Tulfo stated, “You must give warnings through the media.”

Serrano claimed that complaints regarding violations of the 13th-month pay law are handled by the National Labor Relations Commission (NLRC). Still, Tulfo claimed that DOLE is appropriate for addressing the complaints.

“Ang NLRC is currently in trouble when there are no employees at the company. If the employee is no longer associated with the company at the time of the 13th month’s pay, DOLE will take over the case. I’m ordering you to collaborate with LGUs because DOLE has jurisdiction over 13th-month pay concerns, Tulfo added.

Whether regular or contractual, workers are entitled to the 13th-month salary by Presidential Decree 851, sometimes known as the 13th Month Pay Law.

According to the law, “rank-and-file employees, regardless of the nature of their employment, and regardless of how they are paid, are entitled to 13th-month compensation” if they have worked for at least one month throughout the calendar year.

The 13th month’s compensation is calculated using 1/12 of an employee’s annual basic wage or the basic monthly salary for the entire year divided by 12 months.

According to DOLE, the term “basic salary” refers to all compensation or earnings that an employer gives an employee in exchange for services rendered. However, it excludes allowances and financial benefits that are not integrated into or considered part of the regular salary, including overtime pay, premiums, night shift pay, and holiday pay.

The employer must pay the benefit by December 24 or earlier.

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