13TH MONTH PAY. Department of Labor and Employment (DOLE) - Central Visayas Regional Director Salome Siaton (right) reminds employers to give their workers the 13th Month Pay, which is mandatory, as provided for under Presidential Decree 851. She said it should be given on or before December 24. (PNA file photo)
CEBU CITY -- A top labor official in Central Visayas is reminding employers to give their workers' 13th Month Pay on or before December 24.
DOLE-7 Regional Director Salome Siaton also reiterated that employers should not be confused between the 13th Month Pay and Christmas bonus.
While both of them come in monetary form and are given out by employers, Siaton said the 13th Month Pay is the one that is mandatory as provided for under Presidential Decree 851 and failure to comply with is a violation.
“Christmas bonus or company bonus as others may refer it is optional and voluntary in nature, which is actually up to management’s discretion whether to give it out or not,” she said in a statement on Thursday.
Workers who have rendered work in a certain company for at least one month during the calendar year are entitled to a 13th Month Pay.
Siaton, however, said a Christmas bonus may or may not be given out to workers and its provision is most of the time credited to management’s generosity or its intention to motivate workers.
“The same could be actually given out to workers throughout the year but is typically handed to the workers every December, thus the name,” she said.
Also, the 13th 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.
Workers holding managerial positions are not entitled to it.
“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,” Siaton explained.
The 13th Month Pay shall not be less than one-twelfth of the total basic salary earned by the employee within a calendar year.
Also covered by the payment of the 13th Month Pay are household helpers or "kasambahay". (PNA)
