13th month pay for Filipino Workers

The Department of Labor and Employment on Tuesday commended two private companies for their immediate compliance to the 13th month pay law.

Commended for complying with Presidential Decree 851 requiring employers to pay their employees 13th month pay were DOCOMO InterTouch, an Internet Service Provider located at Fort Bonifacio, Taguig; and the Bank of Commerce.

In a letter to the labor secretary Rosalinda Dimapilis-Baldoz, DOCOMO InterTouch reported that its 245 employees already received their 2012 13th month pay amounting to of P5,768,580.69.

The Bank of Commerce in Mandaluyong City allotted P61,816,270.67 for the 13th month pay of its 1,799 rank and file employees and junior and senior officers.

"The 13th month pay is a core labor standard which should be enjoyed by all workers," Baldoz said. "It is among the tasks of the DOLE to ensure that all employers abide by this law."

Baldoz expressed her high regard for employers who conform to labor laws and standards and those who put their workers' concern as one of their top priorities.

As early as November last year, Baldoz already reminded employers that the 13th month pay is a statutory benefit usually expected as part of the employees yearend benefits and is also a core labor standard.

Under Presidential Decree 851, all employers are required to pay all of their employees a 13th month pay not later than December 24 of every year. It defines 13th month pay as one twelfth (1/12) of the basic salary of an employee within a calendar year.

It also explains that the basic salary includes all remunerations or earnings paid by an employer to an employee for services rendered. The formula for computing the 13th month pay is total basic salary earned during the year divided by 12 months.

However, it does not include allowances and monetary benefits not considered as part of the basic salary, such as the cash equivalent of unused vacation and sick leave credits, overtime pay, night shift differential pay, holiday pay, and cost of living allowance (COLA).