The Department of Labor and Employment reminded employers in the private sector to release the 13th-month pay of workers no later than 24 December.

In accordance with the Labor Code of the Philippines and Presidential Decree No. 851, which specifically mandates all employers to pay their employees a 13th-month salary, DOLE Secretary Bienvenido Laguesma issued a Labor Advisory No. 25, Series of 2023 on 8 November to guide employers and employees on the proper computation of the mandatory benefit.

The advisory reiterates that the 13th-month pay "shall be paid to rank-and-file employees in the private sector 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."

Rank-and-file employees who are paid on a piece-rate basis, fixed, or guaranteed wage plus commission, as well as those with multiple employers, those who resigned, terminated from employment, or those who were on maternity leave and received salary differential are eligible for the said benefit.

According to the advisory, the minimum 13th-month pay shall not be less than one-twelfth (1/12) of the total basic salary earned by an employee within the calendar year computed.

The agency clarified that it shall not allow requests for exemptions or deferments of its payment.

Employers must file a report through the DOLE Establishment Report System by 5 January 2024, to track the compliances.

The report shall contain the establishment's name, address, principal product or business, total employment, the total number of workers benefitted, the amount granted per employee, and the total amount of benefits granted.