It’s December 20 and a few days before Christmas. Have you received your 13th month pay already? Or is it already gone by this time?
If you have already received your 13th month pay, good for you! On the other hand, if you have not yet received your 13th month pay at this time, this article is for you. Read on and know your rights!
Q. What is “13th month pay”?
A. It is a mandatory benefit given to employees in the private sector pursuant to Presidential Decree No. 851 (PD 851). Employers are required to grant 13th month pay to all its rank and file employees.
Q. Who are entitled to receive the 13th month pay?
A. If you are a rank and file employee (regardless of the nature of your employment) in a company AND have worked for at least one (1) month during the calendar year, you are entitled to receive 13th month pay.
Q. Who are rank and file employees?
A. If you are NOT a managerial employee, then you are considered a rank and file employee.
Q. Who are managerial employees?
A. Managerial employees are those vested with powers to lay down and execute management policies; to hire, transfer, suspend, lay-off, recall, discharge, assign or discipline employees; or to effectively recommend such managerial actions.
Q. Who are exempted from paying 13th month pay?
A. There are certain employers who are not required to give 13th month pay under PD 851. They are the following:
1. The Government and any of its political subdivisions, GOCCs, except corporations operating essentially as private subsidiaries of the Government;
2. Employers who are already paying their employees 13th month pay or more in a calendar year or its equivalent;
3. Employers of household helpers or persons in the personal service of another in relation to such workers; and
4. Employers of those who are paid on purely commission, boundary, or task basis, and those who are paid a fixed amount for performing specific work, irrespective of the time consumed in the performance thereof, EXCEPT those workers who are paid on piece-rate basis, in which case the employer shall grant such workers the required 13th month pay.
NOTE: Workers paid on piece-rate basis shall refer to those who are paid a standard amount for every piece or unit of work produced that is more or less regularly replicated, without regard to the time spent in producing such piece or unit of work. They are entitled to receive 13th month pay!!!
Q. How to compute 13th month pay?
1. Basic salary x Length of employment = Total basic salary earned for the year
2. Total basic salary earned for the year / 12 (months) ==> Your 13th month pay!
Assuming Ms. A receives a monthly salary of P10,000.00 and she has been with a company for 10 months:
1. Php 10,000.00 x 10 (months) = Php 100,000.00 ==> Total basic salary
2. Php 100,000.00 / 12 (months) = Php 8,333.33 (proportionate 13th month pay)
Q. When should you receive your 13th month pay?
A. Employers are mandated to pay their employees’ 13th month pay NOT later than December 24 of each year.
Employers have an option to give their employees 1/2 of the 13th month pay:
(1) before the regular opening of the school year; and
(2) on or before December 24 of every year.
Q. Are resigned, separated or terminated employees entitled to receive their 13th month pay?
A. YES. They are still entitled to their 13th month pay, for as long as qualified.
So, having read this, you should be able to confirm if you are indeed entitled to the benefit of 13th month pay. If you are entitled to it, then you should know that you should have received it already or if you have not yet received it, this should be given to you NOT later than December 24 this year (or 4 days as of this writing).
If you have any complaints against your employer by reason of non-payment or underpayment of the 13th month pay, you may file a complaint before the National Labor Relations Commission (NLRC), which has jurisdiction over such complaints.
See my other LEGAL posts below:
Things You Need to Know About the 105-Day Expanded Maternity Leave Law
To Change or Not to Change Your Surname After Marriage
Until next time! This is Attorney Mommy, at your service!