MANILA - The Department of Labor and Employment on Monday reiterated that payment of an employee’s 13th-month pay is mandatory.
“The 13th month pay is mandatory, unless merong circumstances that would exempt specific or a particular company to pay, that includes closure,” DOLE director Rolly Francia said.
Presidential Adviser for Entrepreneurship Joey Concepcion reportedly proposed last month a lower alert level to allow more businesses to reopen at a higher rate capacity and earn them funds to pay off their 13th-month pay obligations.
The labor department last year emphasized that despite the pandemic, employers are not excused nor exempted from paying their employees their 13th-month pay.
“Dahil may time pa naman, I’m sure the Secretary or the Department will issue an advisory as to how best companies, especially those reeling from the pandemic, should address paying or not paying the 13th month pay,” Francia said.