The interviewer tests whether you will stand on the law under employee pressure and whether you can explain the statutory nature of 13th month pay clearly.
Respond with empathy but be firm: identify the request, state the legal rule, explain why the waiver is invalid, and offer a compliant alternative if possible.
Start by acknowledging the employee's request without judgment, then move immediately to the legal reality. Say plainly that 13th month pay is a statutory benefit under Presidential Decree 851, which means it is not a matter of company policy or personal preference, so no waiver can override it. Explain that even if the employee signs a document, the Department of Labor and Employment will still hold the company liable for payment, and the waiver would be considered void for being contrary to law. Frame your response around protecting the employee as well as the company, since agreeing to such an arrangement could expose both to penalties and back-pay claims later. Offer the compliant alternative of restructuring the salary package through a separate allowance, but be clear that the 13th month pay itself stays intact. Keep your tone respectful and firm, using a mix of English and Taglish if that matches the employee's style, but never soften the core message. Close by inviting the employee to ask more questions, so the conversation ends on a collaborative note rather than a dead end.
A common Filipino mistake is to soften the answer by saying 'Hindi po talaga pwede eh, kasi bawal' without explaining. Instead, say, 'I understand why you are asking, but 13th month pay is a statutory benefit, so it cannot be waived. The company is legally required to pay it.'
Situation
During my internship at a retail company, a contractual sales clerk asked me if he could waive his 13th month pay so his monthly take-home would look bigger for a bank loan application.
Task
I had to explain why the waiver was not allowed and offer a compliant alternative that still helped him with his goal.
Action
I told him that 13th month pay is a statutory benefit under Philippine law, so it cannot be waived, and any agreement to do so would not be valid. I explained that the company is legally required to pay it as a separate benefit and cannot fold it into the monthly salary. I then suggested he could ask the bank to consider his 13th month pay as part of his annual income by showing his payslips and company certificate.
Result
The clerk accepted the explanation and used his payslips for the loan application. My supervisor later used my explanation as a coaching example for new HR interns.
Even when an employee asks for a workaround, explain the law and redirect to a proper solution.
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