All wage and salary workers are entitled to receive their 13th month pay, as mandated by law (P.D. No. 851), which is equivalent to one twelfth (1/12) of their basic salary within a calendar year.
“This early, workers are already expecting the payment of year-end benefits, including the statutory 13th month pay, so the reminder to all employers to comply with the payment of the 13th month pay is timely,” Labor Secretary Rosalinda Baldoz said in a statement.
The advisory also released the guidelines and formula and computation of 13th month pay.
It does not however include allowances and monetary benefits not considered part of the basic salary e.g. overtime pay, night shift differential pay, holiday pay, and cost of living allowance (COLA).
“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 month during the calendar year,” the advisory said.
Employers are also reminded to submit reports of compliance for the 13th month pay to the nearest Regional Office not later than January 15 of each year.
Violators on compliance could be reported by reaching the Labor department or visiting the nearest DOLE offices in their area.