13th month pay entitlement
"Last December was just my third month as an employee. I was not given a 13th month pay. My boss told me that to be entitled to it, I should have served the company for at least six months. However, some of my co-employees told me that I was entitled to a 13th month pay. Is this true? How much should I have received?
MagnoDear Magno,
Before we answer your question, let us first discuss the basic concept of the 13th month pay and its legal basis. Under Presidential Decree 851, 13th month pay is a mandatory benefit given to employees as an additional pay. The Rules and Regulations Implementing PD 851 defines 13th month pay as one twelfth (1/12) of the basic salary of an employee within a calendar year. Further, under the same law, all employees in a private company covered shall pay all their employees receiving a basic salary of not more than P1,000 a month a 13th-month pay not later than December 24 of every year. (Section 1, PD 851) However, on August 13, 1986, this was amended by Memorandum Order No. 28, by requiring all private employers to pay all their rank-and-file employees the said benefit.Article 212 (m) of the Labor Code of the Philippines provides that “(m)anagerial employee” is one who is vested with powers or prerogatives to lay down and execute management policies and/or to hire, transfer, suspend, lay-off, recall, discharge, assign or discipline employees. Supervisory employees are those who, in the interest of the employer, effectively recommend such managerial actions if the exercise of such authority is not merely routinary or clerical in nature but requires the use of independent judgment. All employees not falling within any of the above definitions are considered rank-and-file employees for purposes of this Book.”
The above provision is used as the basis in determining who are rank-and-file employees for purposes of entitlement to 13th-month pay. (Revised Guidelines on the Implementation of the 13th-month Pay Law).Anent your question on whether or not you were entitled to receive a 13th-month pay from your employer, the law provides that to be entitled to the said benefit, an employee must have worked for at least one (1) month during the calendar year where the same is being given. (Memorandum Order No. 28).
Thus, since as per your narration, you have served your employer for a total of three months, you were entitled to receive your prorated 13th month pay from your employer. As a matter of right, you may demand payment of the same otherwise it may give rise to a labor complaint which you may file before the National Labor Relations Commission or before the Department of Labor and Employment, if your claim does not exceed P5,000.We hope that we were able to enlighten you on the matter.Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to dearpao@manilatimes.net or via text message (key in: Times dearpao and send to 2299)." - https://www.affordablecebu.com/
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"13th month pay entitlement" was written by Mary under the Legal Advice category. It has been read 572 times and generated 1 comments. The article was created on 14 September 2021 and updated on 14 September 2021.
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