Planning to resign this month of November? Worry not because as per PhilStar report, all employers are required to pay their rank-and-file employees 13th month salary, no matter the nature of their job, according to the Department of Labor and Employment’s (DOLE) Handbook on Workers’ Statutory Monterary Benefits. Such an opportunity is given to everyone, even those who will be fired. A mandate of this is authorized by Presidential Decree No. 851.
What is 13th month pay?
The 13th month pay is equal to one-twelfth (1/12) of the basic salary that was earned for the entire year.
DOLE has also informed that the 13th month pay is not the same as Christmas bonus.
Christmas bonus is an optional, non-taxable reward, according to the agency’s website. The amount is given as a reward or incentive for reaching a goal or helping the employer’s business succeed.
The original phrase, according to DOLE, was company bonus, which might actually be provided all year long. It only got to be known as Christmas bonus since it was frequently given out in the weeks before Christmas.
The bonus pay must be distributed no later than December 24, which is the day before Christmas.
“Christmas bonus is given out of the employer’s generosity and is not a demandable and enforceable obligation,” DOLE said.
Who are considered as rank-and-file employees?
According to the Labor Code, a person is a rank-and-file employee if they do not meet the criteria for managerial employees, which include those who can hire, transfer, suspend, terminate, recall, assign, or discipline employees as well as set and carry out management policies. Depending on the employer, managerial emloyees may receive 13th month salary.
In a TikTok video shared on Twitter on November 15 by Chel Diokno of the Free Legal Assistance Group, he added, “Hindi mo man matapos ang taon, dapat may makuha ka pa rin.”
Diokno used the example of a worker making P20,000 per month. The employee would receive P5,000 as their 13th month compensation if they work for three months.
“Kung kayo ay nag-resign, dapat ibigay ang 13th month pay kasabay ng final pay,” Diokno added, saying that this must happen within 30 days of the date of your separation from your job.
“Pag-isipan mabuti ang gagawin. Sa totoo, kayo lang ang nakaaalam ng pinakatama para sa iyo,” Diokno stated.
Employers frequently pay half of the “Christmas bonus” at the start of the school year, according to the department. August marked the commencement of the 2022–2023 academic year.
“Though it seems harmless, mistaking one for the other could actually lead to confusion,” DOLE said.