MANILA — Employers are reminded that 13th month pay is mandatory and cannot be replaced by other allowances or bonuses, the Bureau of Working Conditions (BWC) said.

BWC Director Alvin Curada cited Presidential Decree No. 851 and subsequent Department of Labor and Employment (DOLE) issuances, noting that the 13th month pay must be given on or before Dec. 24.

“No, it cannot be substituted by any incentives or allowances such as Christmas bonuses or grocery allowances,” Curada said. He added that companies may offer additional benefits, but these are separate from the legally required 13th month pay.

Curada also clarified that splitting the 13th month pay, giving a partial amount before Dec. 24 and the rest later, does not comply with the law. Partial advances are allowed earlier in the year, but the balance must still be fully paid by the deadline.

The 13th month pay applies to all rank-and-file workers who have worked at least one month in the calendar year, regardless of position, designation, or employment status. The minimum pay is equivalent to 1/12 of the total basic salary earned within the year.