DOLE set to issue 13th month pay computation advisory

MANILA – The Department of Labor and Employment (DOLE) is set to come up with an advisory on the proper computation of 13th month pay for private-sector workers amid the coronavirus disease 2019 (Covid-19) pandemic.

“So we will issue that labor advisory to clarify exactly how much amount a worker will receive, especially now during the pandemic,” Labor Undersecretary Benjo Benavidez said in a Laging Handa briefing on Tuesday.

Benavidez added that since many workers have not reported to work and numerous establishments have either ceased or downgraded operations, the computation of the 13th month pay will be different.

“The understanding of most of our employers is that the 13th month pay is the total monthly salary of the worker but the computation of the 13th month pay is not like that because many workers did not report to work and we implemented suspensions of work. I think it is only proportionate that we have a correct computation,” he added.

Given this situation, Benavidez said it is likely that employers would spend less for the 13th month pay of their workers.

Benavidez reminded that the payment of the benefit is a statutory obligation.

Meanwhile, he said that in 2020, the agency has logged an 85 percent compliance rate of employers or companies in giving 13th month pay.

Under the law, private-sector employees have to receive their 13th month pay on or before December 24.