Thirteenth (13th) Month Pay Labor Advisory Guidelines for Year 2020
Thirteenth (13th) month pay guidelines have been issued by the Department of Labor and Employment (DOLE) in a Labor Advisory issued on October 16, 2020.
The authority of the DOLE to issue the guidelines is pursuant to Article 5 of the Labor Code of the Philippines, as renumbered and in accordance with Presidential Decree No. 851 requiring employers in the private sector to pay their rank and-file employees a 13th Month Pay.
Coverage
Rank-and-file employees in the private sector shall be 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 (1) month during the calendar year.
Amount of 13th Month Pay
The minimum 13th month pay required by law shall not be less than one-twelfth (1/12) of the total basic salary earned by an employee within a calendar year.
To illustrate:
Total basic salary earned during the year = proportionate 13th month pay
12 months
This minimum amount shall be provided without prejudice to existing company practice and policy, employment contract or collective bargaining agreement, if any.
Time of Payment
The employer shall pay the 13th month pay on or before 24 December 2020.
No Exemption or Deferment
No request or application for exemption from payment of 13th month pay, or for deferment of the payment thereof shall be accepted and allowed.
Report of Compliance
Employers shall make a report of their compliance with the law to the nearest
Regional Office not later than January 15 of the following year. The report shall con form substantially with the following:
-
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Name of establishment
- Address
- Principal product of business
- Total employment
- Total number of workers benefitted
- Amount granted per employee
- Total amount of benefits granted
- Name, position and telephone number of person giving information
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