Employers ordered to release 13th-month pay by December 24
The Philippine Department of Labor and Employment has mandated that private sector employers must release 13th-month pay to eligible employees by December 24. The order applies to all rank-and-file workers who have served at least one month during the year.
Why it matters
This is a critical labor regulation that ensures holiday financial support for millions of private sector workers in the Philippines.
MANILA, Philippines - Employers in the private sector have been ordered to release the 13th-month pay of their workers on or before Dec. 24.
In an advisory signed by Labor Secretary Francis Tolentino, the Department of Labor and employment (DOLE) outlined guidelines for paying 13th-month pay as provided under Article 5 of the Labor Code and Presidential Decree No. 851.
The advisory covers all rank-and-file employees regardless of their employment status and position or method of wage payment, provided they have rendered at least one month of service during the calendar year.
Under the guidelines, the minimum 13th-month pay must be equivalent to one-twelfth of an employee's total basic salary earned during the calendar year.
For piece-rate workers, total earnings from their production or output will serve as the basis for computation. Commissions are excluded if these are not considered part of an employee's basic salary.
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