The Department of Labor and Employment-Regional Office I today encouraged all covered employers to release to their employees their 13th month pay earlier.
Regional Director Henry John Jalbuena said all rank-and-file employees regardless of the nature of their employment, and irrespective of the methods by which they are paid are entitled to 13th month pay, provided they have worked for at least one month during a calendar year.
“By the letter of Presidential Decree 851, or the 13th Month Pay Law, workers whether regular or contractual are entitled to 13th month pay,” Director Jalbuena said.
He added that domestic workers who were excluded by PD 851 are now entitled to 13th month pay by virtue of Republic Act 10361, an Act Instituting Policies for the Protection and Welfare of Domestic Workers.
The 13th month pay is computed based on 1/12 of the total basic salary of an employee within a calendar year, or basic monthly salary for the whole year divided by 12 months.
Basic salary shall include all remunerations or earnings paid by an employer to an employee for services rendered, but does not include allowances and monetary benefits which are not considered, or integrated, as part of the regular, or basic salary, such as the cash equivalent of unused vacation and sick leave credits, overtime, premium, night differential and holiday pay.
Complaints of non-compliance of the 13th month pay law may be brought to the appropriate field offices of the DOLE-RO I, the regional director said.