Photo from Unsplash | Waldemar Brandt
The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of a lawyer or you may directly contact and consult Alburo Alburo and Associates Law Offices to address your specific legal concerns, if there is any.
Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE
- The thirteenth-month pay shall be paid not later than December 24 of every year.
- However, an employer may give the employees one-half (1/2) of the thirteenth-month pay, before the opening of the regular school year and the remaining half on or before December 24 of every year.
- The frequency of the benefit of thirteenth-month pay may be the subject of an agreement between the employer and the recognized collective bargaining agent of the employees. (Thirteenth-Month Pay, 2022 Handbook on Worker’s Statutory Benefits)
More often than not, employees anticipate the grant of their 13th month pay during the Christmas season. As company policy on the time and manner of payment of this benefit varies from one employer to another, the Revised Guidelines on the Implementation of the 13th-Month Pay Law has settled the matter. As such:
“4. Amount and payment of 13th Month Pay
(a) xxx
(b) Time of Payment. — The required 13th month pay shall be paid not later than December 24 of each year. An employer, however, may give to his employees one half (½) of the required 13th month pay before the opening of the regular school year and the other half on before the 24th of December of every year. The frequency of payment of this monetary benefit may be the subject of agreement between the employer and the recognized/collective bargaining agent of the employees.” (Item No. 4, Revised Guidelines on the Implementation of the 13th-Month Pay Law)
In the same manner, the 2022 Handbook on Workers’ Statutory Monetary Benefits states that:
“F. Time of Payment of Thirteenth Month Pay.
The thirteenth-month pay shall be paid not later than December 24 of every year. An employer, however, may give to his or her employees one-half (1/2) of the thirteenth month pay before the opening of the regular school year and the remaining half on or before December 24 of every year. The frequency of payment of this monetary benefit may be the subject of an agreement between the employer and the recognized/collective bargaining agent of the employees.” (Thirteenth Month Pay, 2022 Handbook on Workers’ Statutory Monetary Benefits)
Time of payment of pro-rated 13th-month pay
An employee who has resigned or whose services were terminated at any time before the payment of the 13th-month pay is entitled to this monetary benefit in proportion to the length of time he started working during the calendar year up to the time of his resignation or termination from service. (Item No. 6, Revised Guidelines on the Implementation of the 13th-Month Pay Law)
Related article: How is thirteenth-month pay computed?
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding taxation and taxpayer’s remedies, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
All rights reserved.