DOLE: Release 13th month pay before Christmas

MANILA, Philippines — The Department of Labor and Employment (DOLE) has reminded private sector employers to release their workers’ 13th month pay before Christmas.

DOLE Undersecretary Benjo Benavidez said that pursuant to the Labor Code of the Philippines and Presidential Decree 851, the 13th month pay is mandatory.

“There is no sanction or penalty for this but we have what we call ‘compliance order’ that we can issue against these employers. And if the company doesn’t abide by this compliance order since it’s similar to a court decision, a writ of execution can be issued and their account/s can be garnished or their properties and the proceeds of such can be given to workers who weren’t provided their 13th month pay,” Benavidez explained in a recent televised interview.

“There are small businesses making appeals but 13th month pay is a legal obligation. Payment is the only remedy to extinguish a legal obligation. Covered employers are legally required to pay,” he added.

To monitor compliance, DOLE conducts regular inspections or visitation of companies. 

“We have inspectors visiting workplaces on a regular basis,” Benavidez said.

“The affected employees can also call our hotline 1349 so they can report their employer and any incidents of violation in the workplace,” he noted.

Entitled to receive the 13th month pay are rank-and-file employees in the private sector, provided that they have worked for at least one month during the calendar year.

Employees who are paid on a piece-rate basis, fixed, or guaranteed wage plus commission; those with multiple employers; those who resigned; those who were terminated from employment; or those who were on maternity leave and received salary differential should also receive said benefit.