MANILA – The Department of Labor and Employment (DOLE) on Sunday warned that employers who have not yet provided a 13th-month pay obligation to their employees have at least five days more to comply starting Monday, December 19.
In an interview on Super Radyo dzBB, DOLE Secretary Bienvenido Laguesma reminded private companies of the December 24, 2022 deadline for the mandatory 13th-month pay.
No employer, Laguesma clarified, was exempted from paying their employees their 13th-month pay, even if they have only been working for the company for a month.
Laguesma stressed the need to adhere to the law with regard to the 13th-month pay despite the struggle of most companies to cope with the adverse effect of the Covid-19 pandemic.
“Alam naman natin na yung mga kumpanya lalo yung mga nasa kategorya na micro, small and medium enterprises (MSMEs) ay hirap pa rin dahil hindi pa sila lubusang nakakabangon, pero gusto ko lang sabihin na wala pong exemption sa pagbabayad ng 13th month pay [We know that the companies, especially those in the category of MSMEs, are still struggling because they have not fully recovered, but I just want to say that there is no exemption from paying the 13th month pay,” Laguesma prompted.
Laguesma also urged employers who face difficulty in providing the 13th-month obligation to seek the help of the department to avoid legal responsibility under the Labor Code of the Philippines.
The Department of Trade and Industry (DTI), he said, also has a program through which small businesses may borrow from the Small Business Corporation (SBC) to provide employees their mandatory 13th-month pay.
Laguesma advised companies to communicate with their employees in order to reach an agreement and find a solution to the problem.
“Pwedeng pag-usapan ng manggagawa at employer kung paano matutugunan ang 13th month pay kung hirap ang kanilang kumpanya [The worker and employer can discuss how to meet the 13th month pay if their company is struggling],” said Laguesma.
Laguesma issued a warning, noting that the Labor Department is closely monitoring to ensure compliance of the the 13th-month payout.
Employers who would either fail to pay the 13th salary on time or would not pay it, he said, will be facing consequences of the law.
The 13th-month pay law was enacted in 1975 as part of Presidential Decree No. 851 of President Ferdinand Marcos. It sought to address concerns with the minimum wage, which no longer corresponded to the cost of living.
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