“Presidential Decree (PD 851), or the 13th Month Pay Law, mandates that workers whether regular or contractual, are entitled to 13th month pay,” said Jalbuena.
All employers are required to give 13th month pay to all their rank-and-file employees, regardless of the nature of their employment, and irrespective of the methods by which they are paid, provided that they worked for at least one month during a calendar year.
The 13th month pay constitutes one-twelfth (1/12th) of the basic pay received by an employee in a calendar year, or basic monthly salary for the whole year divided by 12 months.
Jalbuena said the basic salary shall include all remunerations or earnings paid by an employer to an employee for services rendered, but does not include allowances and monetary benefits which are not considered, or integrated, as part of the regular or basic salary.
Among these are the cash equivalent of unused vacation and sick leave credits, overtime, premium, night differential and holiday pay.
Moreover, Jalbuena also reminded that domestic workers who were excluded by PD 851 are now entitled to 13th month pay by virtue of Republic Act 10361, or an Act Instituting Policies for the Protection and Welfare of Domestic Workers.
“Complaints of non-compliance with the 13th month pay law may be brought to the DOLE regional field offices,” Jalbuena concluded.
END/Tim Laderas with a report from Arly Sta. Ana Valdez