An official of the Bureau of Working Conditions (BWC) on Tuesday reminded employers that 13th month pay is mandatory and cannot be substituted by other allowances.
BWC Director Alvin Curada said the giving of 13th month pay is prescribed under a law, where employers are mandated to pay their workers on or before Dec. 24.
“No (it cannot be substituted by any incentives, allowances). According to Presidential Decree No. 851 and subsequent DOLE (Department of Labor and Employment) issuances, the 13th month pay is mandatory and cannot be replaced by other types of bonuses such as Christmas bonuses, grocery allowances, or similar incentives,” he said in a Viber message to reporters.
Curada said companies may give other benefits but that is above the mandatory 13th month pay.
“Employers may offer additional benefits, but these are separate from the legally required 13th month pay,” he said.
“The DOLE has consistently reminded employers that 13th month pay is a legal obligation. Other bonuses are voluntary and cannot substitute this mandatory benefit.”
Asked if the company may release partial payment and give the rest before Dec. 24, he said, “PD851 requires full payment of the 13th month pay by the deadline.”
“Splitting the payment and giving only a partial amount before Dec. 24, with the rest after, does not comply with the law,” he said.
“Employers may choose to advance part of the 13th month pay earlier in the year (e.g., mid-year or quarterly installments), but the remaining balance must still be fully paid on or before Dec. 24.”
The 13th month pay shall be paid to rank-and-file workers 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.
The minimum 13th month pay shall not be less than 1/12 of the total basic salary earned by an employee within a calendar year.*PNA
