DOLE releases guidelines on payment of 13th-month pay for 2021

By Ferdinand Patinio/ Philippine News Agency

The Department of Labor and Employment (DOLE) on Friday released the guidelines for the computation of the mandatory 13th-month pay for private-sector workers for this year.

In Labor Advisory 8, Labor Secretary Silvestre Bello III released the guidelines using the basic wage in Metro Manila, which is at PHP537.

Under the law, the 13th-month pay shall not be less than one-twelfth (1/12) of the total basic salary earned by an employee within a calendar year.

“Total basic salary earned during the year (12 months) = proportionate 13th-month pay,” it said.

Using the basic wage in the National Capital Region at PHP537 per day and a six-day workweek or an equivalent Monthly Basic Salary of PHP14,006.75 (PHP537.00*313/12 months) :

January no absence PHP14,006.75

February no absence PHP14,006.75

March no absence PHP14.006.75

April company shutdown No salary

May company shutdown No salary

June 5 days leave with pay PHP14,006.75

July company shutdown No salary

August company shutdown No salary

September 10 days leave w/o pay PHP8,836.75

October no absence PHP14,006.75

November 1 day leave w/o pay PHP13,469.75

December no absence PHP14,006.75

Total basic salary earned for the year PHPP106,147.00

PHP106,147.00 (12 months) = PHP8,845.58 is the proportionate 13th-month pay.

“The minimum amount shall be given without prejudice to existing company practice or policy, employment contract or collective bargaining agreement (CBA), if any,” the DOLE said.

Private-sector employers are required under Presidential Decree 851 to pay their rank-and-file employees their 13th-month pay.

Covered by the benefits are workers regardless of their position, designation, or employment status, and irrespective of the method by which their wages are paid, provided they have worked for at least one month during the calendar year.

“Employers shall pay the 13th-month pay on or before Dec. 24, 2021. No request or application for exemption from payment of 13-month pay, or for deferment of the payment thereof shall be accepted and allowed,” Bello added.

On the other hand, employers are required to make a report of their compliance online through the DOLE Establishment Report System at reports.dole.gov.ph, no later than January 15 of the following year. (PNA)-rir

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