Department of Labor and Employment(DOLE)

February 6, 2023 Dear Nathan Yatco, Thank you for your request dated Jan 31, 2023 04:06:48 PM under Executive Order No. 2 (s. 2016) on Freedom of Information in the Executive Branch. You asked for Calculation of 13th Month pay. As per PD 851, the thirteenth-month pay shall not be less than one-twelfth (1/12) of the total basic salary earned by an employee in a calendar year. The "basic salary" of an employee for the purpose of computing the thirteenth month pay shall include all remunerations or earnings paid by his or her employer for services rendered. It does not include allowances and monetary benefits which are not considered or integrated as part of the regular or basic salary, such as the cash equivalent of unused vacation and sick leave credits, overtime, premium, night shift differential and holiday pay, and cost of living allowance (COLA). However, these salary-related benefits should be included as part of the basic salary in the computation of the thirteenth-month pay if these are treated as part of the basic salary of the employees, through individual or collective agreement, company practice or policy. Attached herewith is a copy of HANDBOOK ON WORKERS’ STATUTORY MONETARY BENEFITS 2022 Edition for your perusal. We hope that we have clarified your concerns. For further queries, you may reach us through the DOLE Hotline: 1349 Help us to continuously improve our FOI Program Implementation by accomplishing the DOLE-FOI Request Feedback Form through this link: bit.ly/DOLE-FOIFeedbackForm Thank you. Respectfully, Mark Valeros FOI Receiving Officer