Manila Bulletin
Philippines
Resigned or terminated employees still entitled to 13th month pay – Bello
Philippines
Resigned or terminated employees still entitled to 13th month pay – Bello
Resigned or terminated employees still entitled to 13th month pay – Bello
Published Dec 16, 2019 12:00 am
By Leslie Ann Aquino
An employee, who has resigned or whose services was terminated at any time before the payment of the 13th-month salary, will still be entitled to the said monetary benefit, the labor department said.
Department of Labor and Employment (DOLE) Secretary Silvestre Bello III speaks during the ASEAN Labor Ministers' Retreat in Davao City. (Keith Bacongco)
In a statement, Labor Secretary Silvestre Bello III said the benefit should be "in proportion to the length of time the employee has worked during the year."
"Thus, the 13th-month pay is computed from the time the employee has started working during the calendar year up to the time of his or her resignation or termination from service," he said.
The labor chief renewed calls for private sector employers to release the 13th-month pay of workers not later than December 24.
“We call on our private sector employers to give the 13th-month pay of their rank and file employees on or before December 24,” Bello said.
He added: “They are entitled to this benefit, regardless of the nature of their employment and irrespective of the methods by which their wages are paid, provided they worked for at least one month during the calendar year.”
Bello reminded employers that they were duty-bound to report their compliance with the said general labor standard.
The Labor Code provides that every covered employer is required to make a report of compliance with the law to the nearest DOLE regional office not later than January 15 of each year.
The 13th-month pay is a mandatory benefit provided to employees pursuant to Presidential Decree No. 851.
It is defined to mean one-twelfth (1/12) of the basic salary of an employee within a calendar year.
The basic salary includes all remunerations or earnings paid by an employer to an employee for services rendered, but may not include cost-of-living allowances (COLA), profit-sharing payments, cash equivalents of unused vacation and sick leave credits, overtime pay, premium pay, night shift differential pay, holiday pay, and all allowances and monetary benefits which are not considered, or integrated as part of the regular or basic salary of the employee.
Department of Labor and Employment (DOLE) Secretary Silvestre Bello III speaks during the ASEAN Labor Ministers' Retreat in Davao City. (Keith Bacongco)
In a statement, Labor Secretary Silvestre Bello III said the benefit should be "in proportion to the length of time the employee has worked during the year."
"Thus, the 13th-month pay is computed from the time the employee has started working during the calendar year up to the time of his or her resignation or termination from service," he said.
The labor chief renewed calls for private sector employers to release the 13th-month pay of workers not later than December 24.
“We call on our private sector employers to give the 13th-month pay of their rank and file employees on or before December 24,” Bello said.
He added: “They are entitled to this benefit, regardless of the nature of their employment and irrespective of the methods by which their wages are paid, provided they worked for at least one month during the calendar year.”
Bello reminded employers that they were duty-bound to report their compliance with the said general labor standard.
The Labor Code provides that every covered employer is required to make a report of compliance with the law to the nearest DOLE regional office not later than January 15 of each year.
The 13th-month pay is a mandatory benefit provided to employees pursuant to Presidential Decree No. 851.
It is defined to mean one-twelfth (1/12) of the basic salary of an employee within a calendar year.
The basic salary includes all remunerations or earnings paid by an employer to an employee for services rendered, but may not include cost-of-living allowances (COLA), profit-sharing payments, cash equivalents of unused vacation and sick leave credits, overtime pay, premium pay, night shift differential pay, holiday pay, and all allowances and monetary benefits which are not considered, or integrated as part of the regular or basic salary of the employee.