Manila: The Bureau of Working Conditions (BWC) emphasized the significance of the 13th month pay as an acknowledgment of employees’ contributions to a company’s growth and success. BWC Director Alvin Curada underscored this perspective, stating that the 13th month pay serves as more than just a legal obligation; it is a testament to the invaluable role workers play in the productivity and prosperity of businesses.
According to Philippines News Agency, Director Curada also pointed out that providing the 13th month pay enhances productivity by motivating employees to perform well and contribute to the company’s success. He articulated that this benefit goes beyond merely adhering to legal requirements. It underscores respect for workers, fosters consistent productivity, and aids in retaining employees by demonstrating the company’s appreciation for those who drive its growth.
Additionally, BWC Director Curada reminded companies of their responsibility to disburse the 13th month pay in full by December 24, in compliance with the law. Presidential Decree No. 851 mandates the provision of 13th month pay to private sector workers. This payment applies to rank-and-file employees regardless of their position, designation, or employment status, as long as they have worked for at least one month during the calendar year.
The decree stipulates that the minimum 13th month pay must be no less than one-twelfth of the total basic salary an employee has earned within the calendar year.
