Workers in the Philippines may receive lower 13th month pay

Workers in the Philippines who were already hit with pay cuts this year are likely to receive a lower 13th month pay, said the Department of Labour and Employment (DOLE). 

The amount of the 13th month pay workers are set to receive is “proportionate” to the total salary they earned on average in a year, said Labour Undersecretary Benjo Benavidez in a televised interview, reports Business Mirror. 

Due to the tighter pandemic-led restrictions, many businesses were forced to temporarily retrench or cut the work days of their staff. This may lead to firms paying a lower salary, and in turn, resulting in a lower 13th month pay for workers, said Benavidez. 

“Many employers think that the 13th month pay should be [equivalent] to a whole monthly salary of a worker. This is not how a 13th month pay is computed,” he added. 

DOLE has since issued a clarification to some business leaders who are concerned that they may not be able to afford the usual 13th month pay of their workers. 

READ: ‘No vaccine, no pay’ practice declared unlawful in the Philippines

To provide support on the matter, the Small Business Corporation of the Department of Trade and Industry will be extending zero-interest loans to micro and small firms to help them fulfil the payout to their staff.