Philippine Department of Labor and Employment Reminds Employers to Pay 13th Month's Wages Before Christmas

The Department of Labor and Employment (DOLE) has called on the private sector to meet its obligation to pay workers their 13th month's wages on or before December 24, 2023, without waivers or extensions.

This is the message that the Philippine Department of Labor and Employment conveyed to employers in a press release on Friday, and cited Labor Advisory No. 25 of the 2023 series issued by Secretary of Labor Bienvenido Laguesma.

"The circular reiterates that the 13th month's wages should be paid to ordinary employees in the private sector, regardless of their position, job title or employment status, and regardless of how their wages are paid, provided they have worked for at least one month of the year," the Labor Department said."

"Also entitled to this benefit are ordinary employees on piece-rate, fixed or guaranteed wages plus commission; persons with multiple employers; persons who have resigned; persons who have been dismissed; or those who are on maternity leave and enjoy wage differentials."

Under the Philippine Labor Code and Presidential Decree 851, mandatory benefits may not be less than 1/12 (1/12) of the gross basic salary earned by the employee in a calendar year.

The calculation formula is as follows: total basic salary/12 months = proportional salary paid in the 13th month.

The Labor Advisory said it "shall not accept and allow any request or application for exemption from payment of the 13th month's wages or for deferment of payment of wages."

To ensure that business owners comply with the law, the government requires employers to submit reports through the Department of Labor's Enterprise Reporting System by January 15, 2024.

Agencies responsible for monitoring workplace compliance with general labor standards include DOLE regional/field/provincial offices that have jurisdiction over the above-mentioned agencies.