Workers group urges
employers to comply with mandated 13th month pay bonus
By Associated Labor Unions (ALU)
November 19, 2016
QUEZON CITY – All
rank-and-file employees including regular and contractual workers are
entitled to a 13th month pay cash bonus and they must assert their
rightful claim to it because it is mandated by law as incentive to
workers for helping the economy grow, reminds labor group Associated
Labor Unions (ALU) said yesterday.
“All rank-and-file employees
regardless of position, designation or employment status have all the
right to claim their thirteenth month pay cash bonus. Even if you are
employed for even at least a month during the calendar year or
receiving salary of P1,000 per month, they can avail of this bonus,”
said Alan Tanjusay, ALU spokesperson.
He clarified that 13th month
pay is different than Christmas bonus.
Christmas bonus is not
mandated by law but a discretionary act of goodwill on the part of the
employers. The Christmas bonus may come in the form of cash or kind or
combination of both.
However, the minimum 13th
month pay bonus is required by law. The bonus must be equivalent to a
month’s basic pay excluding allowances, overtime pay, premium pay,
night shift differential, holiday pay, profit-sharing payments, cash
equivalent of unused vacation and sick leave.
Tanjusay said the bonus must
be received in cash not in kind. “Employers must give it in cash. If
employers convert it to rice or grocery items, it’s not 13th month pay
bonus anymore. The bonus must be in cash. If they want to give rice
and grocery items, it is welcome but it must be received as additional
bonus.”
“Hindi rin po pwede na
utangin ng employer ang 13th month pay bonus na ito sa kanyang
manggagawa. Bawal po ito,” he added.
He called on the
government’s Department of Labor and Employment (DOLE) to strongly
enforce the law because some abusive employers resort to different
schemes and tactics to avoid paying the mandated thirteenth month
bonus.
He said aside from
converting thirteenth month bonus to grocery items, gadgets or
appliances, some employers resort to giving token or raffle draw
certain amount or gadgets and appliances to avoid paying thirteenth
month pay.
According to the rules and
regulation of Presidential Decree 851 otherwise known as 13th Month
Pay Law, the 13th month pay shall be paid not later than December 24.
However, an employer may give to his or her employees half of the 13th
month pay before the opening of the regular school year and the
remaining half on or before December 24 every year.
There are around 920,000
work establishments in the country employing 39 million workers in
various major industry enterprises including agriculture,
manufacturing and services sectors.