February 9, 2023

In the face of all the difficulties this Covid-19 pandemic has brought, let us remember that Christmas is all about hope. A comforting reassurance, after a tough year when many families had already spent special occasions in isolation, served as motivation to put up with government restrictions.
With a few days before Christmas Day, employers are reminded to give their employees their 13th month. Under Labor Advisory 28 issued on Oct. 16, the employer is required to pay the 13th month pay on or before Dec. 24. In addition to this deadline for payment, the employer is required to submit a report of their compliance with the law to the Department of Labor and Employment regional office not later than Jan. 15 containing the name of the establishment, address, principal product of business, total employment, total number of workers benefitted, amount granted per employee, total amount of benefits granted, and the name, position and telephone number of the person giving the information.
Your 13th month computation is actually simpler than you think. To compute your 13th month pay, multiply your basic monthly salary to the number of months you have worked for the entire year then divide the result to 12 months. Monthly Basic Salary x Employment Length ÷ 12 months is the proportionate 13th month pay.
Remember that your monthly basic salary doesn’t include allowances or other monetary benefits such as the cash equivalent of your unused leaves, overtime pay, premium pay, and night shift differential.
Employees in the private sector who will report to work on the declared holidays this Holidays are entitled to receive higher pay. In Labor Advisory 32, s. 2020 signed by Sec. Silvestre Bello III, there are three special non-working holidays and two regular holidays in December.
The special holidays are the Feast of the Immaculate Conception of Mary (Dec. 8) Christmas Eve and New Year’s Eve, while the regular holidays are Christmas Day and Rizal Day (Dec. 30).
The prescribed pay rules for Dec. 8, 24, and 31, 2020, (special non-working holidays) are as follows: For employees who did not work, the “no work, no pay” policy shall apply unless there is another company policy, practice, or Collective Bargaining Agreement granting payment on special days.
For work done during the special non-working holiday, the employees shall be paid an additional 30% of their basic wage on the first eight hours of work [(basic wage x 130%) + COLA].
For work done over eight hours (overtime work), the employees shall be paid an additional 30% of their hourly rate on said day (hourly rate of the basic wage x 130% x 130% x number of hours worked).If the employees work on a special holiday that also falls on their rest day, they shall be paid an additional 50 percent of their basic wage on the first eight hours of work [(basic wage x 150%) + COLA].
For overtime work on a special holiday that also falls on their rest day, they shall be paid an additional 30 percent of their hourly rate on said day (Hourly rate of the basic wage x 150% x 130% x number of hours worked).
For December 25 and 30, which are regular holidays, the following rules shall apply:If the employees did not work, they shall be paid 100% of their salary for days indicated [(basic wage + COLA) x 100%], while for work done during the regular holiday, the employees shall be paid 200% of their regular salary for the first eight hours [(basic wage + COLA) x 200%].
For overtime work (work done over eight hours), they shall be paid an additional 30% of their hourly rate [Hourly rate of the basic wage x 200% x 130% x number of hours worked].If employees work on a regular holiday that also falls on their rest day, they shall be paid an additional 30 percent of their hourly rate of 200 percent [(basic wage + COLA) x 200%] + [30% (basic wage x 200%)].
For overtime work on a regular holiday that also falls on their rest day, they shall be paid an additional 30 percent of their hourly rate on said day (Hourly rate of the basic daily wage x 200% x 130% x 130% x number of hours worked).
However, in line with the existence of a national emergency due to the Covid-19 pandemic, establishments that have closed or ceased operations during the community quarantine period are exempted from the payment of the holiday pay on Dec. 25 and 30 under the advisory.
Christmas is most truly Christmas when we celebrate it by giving the light of love to those who need it most. Merry Christmas everyone. Stay safe and god bless us all.