epee 9 308 ARON everre coe am owe bo nor wu me secewney fy Republic ofthe Philippines DEPARTMENT OF LABOR AND EMPLOYMEN’ Tntraros, Maaila DEPARTMENT ADVISORY NO. 02 Sets of2012 Payment of Thirteenth-Month Pay Pursuant fo the provisions of Presidential Decree No. 851 and its Implementing Rules and Regulations requiing employers in the private sector to pay their rank-and-file employees a 13% Month Pay on or before December 24 of every year, all covered employers are hereby reminded to comply with the following rules: |. DEFINITION OF TERMS 1. “Thiteenth-month pay” shall mean one twelfth (1/12) of the basic salary of an employee within a calendar year. 2. “Basic salary" shall include all remunerations or earnings paid by an ‘employer to an employee for services rendered but may not inciude cost-ofving allowances. profitsharing payments, cash equivalent of Unused vacation and sick leave credits, overtime pay, premium pay, right shit differential, holiday pay, and all clowances and monetary benef which are not considered, or integrated, as part ofthe requir, or basic salary of the employee. |. COVERAGE Rank-and-fle employees in the private sector shall be entiied to 13 month pay regardless of their position, designation, or employment status, and inespective of the method by which their wages ate paid, provided that they have worked for at least one month during the calendar year, Wl TIME OF PAYMENT The 13" month pay shall be paid not later than December 24 of every year. An employer, however, may give to his or her employees ‘one-half (1/2) of the 13 month pay before the opening of the reguiar school year and the remaining half on or before December 24 of every year.IV. AMOUNT OF 13” MONTH PAY The minimum 13th month pay required by law shall not be less than ‘one-twelfth (1/12) of the total basic salary eamed by an employee within ‘acalendar year. \V. FORMULA AND COMPUTATION OF 13% MONTH PAY Total basic salary eamed during the year = Proportionate 13% month pay 12months Mlustration: Using the basic wage in the National Capital Region of 426,00! per day and a six-day workweek or an equivalent Monthly Basic Salary of P11,111.50, to wit January no absence P1111.50 February no absence P11.111.50 Moreh I day leave w/pay —P11,111.50 Apri no absence PIntn.s0 May 2daysieave w/pay —P11,111.50 June 2daysleovew/pay —P11,117.50 July no absence PI.111.80 August 2 days leave w/o pay P10,259.50 September on matemity leave? no salary October ‘on matemity leave —_nosalary November no absence Pn111.50 December Sdaysleave w/o pay P_8981.50 Total Basic salary earned ~—_P108,133,00 108,138.00 / 12 months = P9,011.08 9.011.08is the proportionate 19 month pay VI. REPORT OF COMPLIANCE Every covered employer shall make a report of his compionce with the law fo the nearest Regional Office not later than January 15 of each yeor. The report shail conform substantialy with the following form: The tert 2000 COLA a Wane Ore No MER? PAE + PCOS PS), tne bse Banepa be IF metho oe . The 2 erhalten ct marth py bec ele ene ‘tts eam am be apy spre sO ale iReport on Compliance with PD No. 851 Name of establishment ‘Adress Principal product or business Total employment Total number of workers benefited ‘Amount granted per employee Total amount of benefits granted |. Name, position, and telephone number of person giving information Please be guided accordingly. ROsAUNda DIMAPI-bALDOZ Secretary 16 November 2012