DOLE to set ‘proportionate’ computation on 13th month pay advisory

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The Department of Labor and Employment (DOLE) said it will release an advisory on the proper computation of 13th-month pay for private-sector workers amid the COVID-19 pandemic. 

During Tuesday’s Laging Handa briefing, Labor Undersecretary Benjo Benavidez said that the department will clarify the exact amount a worker will receive. 

Benavidez added that since many workers have not reported to work and numerous establishments have either shut down or downgraded operations due to the pandemic, the computation of the 13th-month pay will be different.

“The understanding of most of our employers is that the 13th-month pay is the total monthly salary of the worker, but the computation of the 13th-month pay is not like that because many workers did not report to work, and we implemented suspensions of work. I think it is only proportionate that we have a correct computation,” he added.

This means workers may receive a proportionate amount to the total salary earned in a year divided by 12 months. 

(Total Basic Salary x Employment Length / 12 months)

The labor undersecretary also reminded employers that the payment of the 13th-month pay is a statutory obligation. In 2020, the department logged an 85 per cent compliance rate of employers or companies in distributing the benefit.

Under Presidential Decree 851, private-sector employees must receive their 13th month’s pay on or before December 24 of every year. – WhatALife.ph

Source: (1)(2)


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