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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:
13th month pay is given to rank-and-file employees in the private sector regardless of their position, designation and employment status, provided that they have worked for at least one (1) month during the calendar year.
It shall also be given to rank-and-file employees with multiple employers. (Labor advisory No. 25, series of 2023)
Regarded as a statutory monetary benefit, 13th month pay is a benefit required to be paid by employers to their employees who have been working for them for at least one month during the calendar year.
Presidential Decree No. 851 (P.D. No. 851), issued on December 16, 1976 and otherwise called the 13th Month Pay Law, has paved the way to annual 13th month pay that Filipino employees enjoy. The law required all employers to pay all their employees receiving a basic salary of not more than P1,000.00 a month, regardless of the nature of their employment a 13th month pay not later than December 24 of every year.
P.D. No. 851 has been modified by Memorandum Order No. 28, issued on August 13, 1986, to the extent that all employers are hereby required to pay all their rank-and-file employees a 13th month pay not later than December 24 of every year.
The Department of Labor and Employment (DOLE) issued Labor Advisory No. 25, Series of 2023, which reiterated the guidelines on the payment of 13th month pay by employers in the private sector to pay their rank-and-file employees.
Labor Advisory No. 25, Series of 2023 provides:
“The 13th month pay shall be paid to rank-and-file employees in the private sector regardless of their position, designation, or employment status, and irrespective of the method by which their wages are paid. Provided that they have worked for at least one (1) month during the calendar year.
It shall also be given to rank-and-file employees who are paid on a piece-rate basis, fixed or guaranteed wage plus commission, those with multiple employers, those who resigned, were terminated from employment, or were on maternity leave and received salary differential.” (Labor Advisory No. 25, s. 2023)
The 2023 Handbook on Workers’ Statutory Monetary Benefits provides that “all employers are required to pay their rank-and-file employees thirteenth month pay, 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 (1) month during the calendar year.” (Coverage, 13th Month Pay, 2023 Handbook on Workers’ Statutory Monetary Benefits)
The same rule is elucidated in the case of Central Azucarera de Tarlacc v. Central Azucarera de Tarlac Labor Union-NLU (G.R. No. 188949, July 26, 2010), to wit:
“13th month pay mandated by Presidential Decree No. 851 represents an additional income based on wage but not part of the wage. It is equivalent to 1/12th of the total basic salary earned by an employee within a calendar year. All rank-and-file employees, regardless of their designation or employment status and irrespective of the method by which their wages are paid, are entitled to this benefit, provided that they have worked for at least one month during the calendar year. If the employee worked for only a portion of the year, the 13th month pay is computed pro-rata.”
Read also: Employees Not Covered by the 13th Month Pay Law
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