Should you be worried about your Christmas Bonus this year? Part 2
The Department of Labor and Employment (DOLE) Labor Advisory No. 18, Series of 2021 (L.A. No. 18-21) prescribes the guidelines for the computation of the mandatory 13th-month pay for private-sector workers for this year.
Under Presidential Decree (P.D.) No. 851, the 13th-month pay shall not be less than one-twelfth (1/12) of the total basic salary earned by an employee within a calendar year.
L.A. No. 18-21 provides a scenario using the minimum wage in Metro Manila to illustrate the formula, taking into consideration the possibility that the company shut down during the multiple lockdowns --
“Using the basic wage in the national Capital region at P537.00 per day and a six day work week or an equivalent Monthly basic Salary of P14,006.75 (P537.00*313/12 months):
Total basic salary earned for the year P106,147.00
P106,147.00 = P 8,845.58 is the proportionate 13th month pay 12 months
The minimum amount shall be given without prejudice to existing company practice or policy, employment contract or collective bargaining agreement (CBA), if any.”
It should be stressed that the payment of the 13th month pay is mandatory, whatever the status of the vaccination of the employee may be. It cannot be withheld even if the employee is not vaccinated.
