13th month pay cash only – Bello

Published December 21, 2020, 3:36 PM

by Leslie Ann Aquino

Labor and Employment Secretary Silvestre Bello III said the 13th month pay has to be given in cash.

“It has to be in cash, not in kind, that will be given to employees,” he said in a forum on Dec. 16.

The Labor chief also reminded employers in the private sector of the Dec. 24 deadline for the 13th month pay.

“Dec. 24 is already near. It is the deadline of the payment of the 13th month pay for workers,” said Bello. 

“As long as they worked for at least one month, they are entitled to 13th month pay that has to be paid on or before Dec.  24,” he added. 

“No extension, no postponement, no deferment and no payment in kind,” said Bello.

Last October, the Labor department released Advisory 28-2020 regarding the ”Guidelines on the Payment of Thirteenth Month Pay” which states that “no request or application for exemptions or for deferment of the payment shall be accepted and allowed.”

Under Presidential Decree No. 851, employers in the private sector are required to pay their rank-and-file employees a 13th month pay on or before Dec. 24 as part of their mandated benefits. 

The amount of 13th month pay shall at least be 1/12 of the total basic salary earned by the employee for the year.