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http://www.go -co mpro mise-o n-wo rkers-13th-mo nth-pay-baldo z-reminds-emplo yers/

No compromise on workers 13th month pay, DOLE reminds employers

A November 29, 2011 press release from the Department of Labor and Employment Secretary of Labor and Employment Rosalinda Dimapilis-Baldoz yesterday reminded the countrys private sector employers there will be no compromise when it comes to the 13th month pay due the countrys workers. Baldoz made the early reminder as the country braces f or the long Christmas holidays and as workers anticipate the payment of year-end benef its, including the statutory 13th month pay. T he Labor Code of the Philippines (Presidential Decree 851) requires all employers to pay their rank-and-f ile employees a 13th month pay regardless of the nature of their employment and whatever the method their wages are paid, provided they worked f or at least one month during a calendar year. It should be paid not later than December 24 of every year. According to Baldoz, piece-rate workers are also entitled to the 13th month pay, as well as resigned or separated/terminated employees, who should be paid in proportion to the length of time he worked during the year, reckoned f rom the time he started working during the calendar year and up to the time of his resignation or termination f rom the service. T he 13th month pay should not be less than a twelf th of the total basic salary of an employee within a calendar year. For computation purposes, the basic salary includes all remunerations or earnings paid by an employer to an employee f or services rendered. It does not include, however, allowances and monetary benef its not considered as part of the basic salary, such as the cash equivalent of unused vacation and sick leave credits, overtime pay, night shif t dif f erential pay, holiday pay, and cost of living allowance (COLA). However, these salary-related benef its should be included as part of basic salary in the computation of the 13th month pay if by individual or collective agreement, company practice or policy the same are treated as part of the basic salary of the employee. Employers exempted f rom paying the 13th month are the government and any of its political subdivisions, including government owned and controlled corporations, except those corporations operating essentially as private subsidiaries of the government; employers who are already paying their employees 13th month pay or more in a calendar year or its equivalent at the time of the issuance of PD 851; employers of house helpers and persons in the personal service of another; and employers of those who are paid on purely commission, boundary, or task basis, and those paid in f ixed amount f or perf orming specif ic work regardless of the time consumed in the perf ormance of the work. In urging compliance with the payment of the 13th month pay, Baldoz encouraged workers to report violations to the f ollowing: T he DOLE Call Center at Hotline 2917 f rom your Globe or T M mobile phones, 908-2917 f rom your f ixed-line phones f or f ree, or text (SMS) 2910. Concerns may also be addressed to the Bureau of Working Conditions at tel. no. 527-3000 local 301 and 307; email bureauof;

To maintain compliance thereof , all employers are required to submit immediately their written compliance, with supporting documents, to the nearest Regional Of f ice.