MANILA – The Department of Labor and Employment (DOLE) on Wednesday reminded employers to pay their employees the mandatory 13th month pay on or before December 24.
Labor Secretary Bienvenido Laguesma said private sector employers are mandated to pay the benefits due to their workers, which is equivalent to an employee’s one-month salary.
“There is no exemption, no deferment. We recognize employers are still struggling. But according to the law, there is no exemption for the 13th month pay,” Laguesma said in a radio interview.
He, however, noted that employers and employees have the prerogative to forge special arrangements for the payment of the benefit.
“That matter (special arrangement on the payment) is between the employer and employees. They can just come to an agreement. We have not overcome the pandemic, but we need to understand the condition of the workers. In order for our relationship to be happy, I hope we grant them what is set by the 13th month pay law,” Laguesma said.
Presidential Decree 851 requires employers in the private sector to pay their regular employees their 13th month pay.
Covered by the employment benefit are rank-and-file employees in the private sector.
They are entitled to 13th month pay regardless of their position, designation, or employment status, and irrespective of the method by which their wages are paid, provided that they have worked for at least one month during the calendar year. (PNA)