Each year’s end, many look forward to the long vacations that the holiday season brings. But apart from this relaxation period, all the employees have been waiting for their bonuses, if not, their 13th month’s pay.
Meaning of the 13th month payment
How much is the 13th month payment? It is an additional benefit in the form of cash equivalent to not less than 1/12 of the total base salary received by an employee. It is computed based on the number of months that the employee has worked within a full year.
The payment of this additional remuneration to the employee is not only discretionary on the part of the employer, but also mandatory by law. It is not similar to bonuses that can only be awarded if the employer’s means or resources allow. It will be paid no later than December 24 of each year. However, the employer can give half before the start of the school year and the other half on or before December 24.
What is the base salary?
The law clearly establishes the scope of an employee’s base salary. An employee’s “base pay” for purposes of computing the 13th month’s pay shall include all wages or earnings paid by your employer for services rendered but does not include monetary allowances and benefits that are not considered or integrated as part of regular or base salary, such as the cash equivalent of unused vacation and sick leave credits, overtime premium, vacation pay, and night differentials, and cost of subsistence allowances.
Who is entitled to the 13th Month Payment
Only those base employees who have worked for at least one month in a year with a company are entitled to receive the 13th month’s pay. The law does not distinguish as to the status or designation of an employee, so we must not distinguish. Therefore, it must be understood that even if it is not regular or permanent, an employee can receive this additional payment as long as he has worked one month in a year.
Even if the employee has resigned after one month or has been terminated, such right will still be granted. The calculation of the payment of the 13th month must be proportional to the time that the employee has worked during the year.
For those who work in multiple companies, either full-time or part-time, they can demand payment of their thirteenth month from all the companies where they work.
Non-payment of the payment of the 13th month
In the event that the employer does not deliver the payment of the 13th month, the affected workers can legitimately claim it from their employers. If despite the demand, the employer refuses to do so, a complaint must be filed with the Department of Labor and Employment or the National Labor Relations Commission.
