September 23, 2023


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NWPC: Resigned employees entitled to 13th month pay


MANILA — Private sector workers who have resigned from work but have served their former company for at least one month are entitled to receive a 13th month pay.
In a Facebook post on Thursday, the National Wages and Productivity Commission (NWPC) reminded employers that their former employees must still get their bonus, which is mandated by the Labor Code of the Philippines.
“Resigned employees are still entitled to 13th month pay,” it said.
Under Labor Advisory No. 18-2018, all employers are required to pay their rank-and-file employees the 13th-month pay, regardless of the nature of their employment, and irrespective of the methods by which their wages are paid, provided that they worked for at least one month during a calendar year.
It added that the Labor Code-mandated bonus shall be paid using the computation of total basic salary earned during the year divided by 12 months.
The basic pay includes all earnings paid by an employer to an employee for services rendered.
However, it does not include cost-of-living allowances (COLA), profit-sharing payments, cash equivalents of unused vacation and sick leave credits, overtime pay, premium pay, night shift differential pay, holiday pay, and all allowances and monetary benefits, since they are not considered as part of the regular or basic salary of the employee.
Earlier, the Department of Labor and Employment said that employees must get their 13th month pay on or before December 24. (PNA)

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