DOLE releases guidelines on mandatory 13th-month pay rules

November 29, 2022

Tags

National News

The Department of Labor and Employment (DOLE) on Monday, Nov. 28, released the guidelines for the computation of the mandatory 13th-month pay for private-sector workers for 2022.

In Labor Advisory No. 23, s.2022, Labor Secretary Bienvenido Laguesma released the guidelines using the daily wage in National Capital Region (NCR), which is at P570, according to the prevailing salary adjustment.

Under the law, the 13th-month pay shall not be less than one-twelfth (1/12) of the total basic salary earned by an employee within a calendar year.

Covered by the benefits are workers regardless of their position, designation, or employment status, and irrespective of the method by which their wages are paid, provided they have worked for at least one month during the calendar year.

“Thirteenth-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,” the advisory read.

The Labor Department also released a guideline for computing the duly 13th-month pay based on the prevailing daily basic wage.

“It shall also be given to rank-and-file employees who are paid on a piece-rate basis, fixed or guaranteed wage plus commission, with multiple employers, resigned or were terminated, and were on maternity leave and receive salary differential are also entitled to 13th-month pay,” it added.

Based on the matrix of basic wage in the NCR at P570 per day and a six-day workweek or an equivalent Monthly Basic Salary of P14,867.50 (P570.00*313/12 months).

To compute the proportionate 13th-month collectibles, get the total sum of the basic salary for the whole year and divide it into 12. The sum will be the 13th-month pay provisions, according to DOLE.

“The minimum amount shall be given without prejudice to existing company practice or policy, employment contract or collective bargaining agreement (CBA) if any,” the DOLE said.

Meanwhile, the DOLE warned all private employers to implement the mandatory 13th-