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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:
“The required 13th month pay of the rank-and-file employees 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.” (Revised Guidelines on the Implementation of the 13th Month Pay Law)
The 13th month pay is a legal bonus that has become synonymous with the holiday season, providing an extra reason to celebrate and indulge in the joy of giving. For this reason, the law mandates that rank-and-file employees should receive their 13th month pay no later than December 24 each year.
According to Section 1, Presidential Decree No. 851:
“All employers are hereby required to pay all their employees receiving a basic salary of not more than P1,000 a month, regardless of the nature of their employment, a 13th-month pay not later than December 24 of every year.”
According to Section 1, Rules and Regulations Implementing Presidential Decree No. 851:
“Payment of 13-month Pay All employers covered by Presidential Decree No. 851, hereinafter referred to as the “Decree”, shall pay to all their employees receiving a basic salary of not more than P1,000 a month a thirteenth-month pay not later than December 24 of every year.”
However, employers have the flexibility to distribute the payment of 13th month pay in two parts. The Revised Guidelines on the Implementation of the 13th Month Pay Law allows employers to give half of the required 13th month pay before the opening of the regular school year, and the remaining half on or before December 24 of every year.
According to Revised Guidelines on the Implementation of the 13th Month Pay Law:
“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.”
Employers, by adhering to the legal mandate of timely distribution, not only fulfill their legal obligations but also contribute to a positive and festive atmosphere in the workplace. So, as the clock ticks toward December 24, employees can eagerly await the arrival of their 13th month pay, bringing an extra dose of merriment to the most wonderful time of the year.
Read also: What are the equivalent forms of the 13th-month pay? (P.D. No. 851)
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.
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