DOLE Issues Early Reminder for 13th Month Pay Compliance
The Department of Labor and Employment (DOLE) has issued an early reminder to all private establishments across the Philippines regarding their obligation to provide the mandatory 13th month pay to employees. The announcement came during a televised public briefing where labor officials emphasized the December 24 deadline for this important employee benefit.
Who Qualifies for the 13th Month Pay?
According to Bureau of Working Conditions (BWC) Director Alvin Curada, the 13th month pay requirement applies to all rank-and-file employees in private companies. The key qualification is that an employee must have completed at least one month of service within the calendar year to be eligible for this mandatory benefit.
Director Curada specifically addressed common concerns about employment status, clarifying that termination or resignation does not remove an employee's right to receive their 13th month pay. This important protection ensures that workers receive what they've earned regardless of how their employment ends.
How to Calculate Proportional Payments
For employees who resign or are terminated before the year ends, Curada explained the calculation method for proportional 13th month pay. "If you resign or are terminated, for example, you will receive proportionate pay," the labor official stated.
The calculation involves taking the total basic salary earned from January up to the date of separation and dividing this amount by twelve. This result represents the proportional 13th month pay that the employer must provide, regardless of the employment separation circumstances.
DOLE's early reminder aims to prevent last-minute compliance issues and ensure that all eligible workers receive their rightful benefits on time. Employers are encouraged not to wait until the December 24 deadline but to process these payments earlier to avoid penalties and ensure smooth operations during the holiday season.
