Can excluded benefits be included in the basic salary computation for thirteenth-month pay?
Yes, certain salary-related benefits can be included as part of the basic salary under specific conditions. If these benefits are treated as part of the basic salary through individual agreement, collective agreement, company practice, or policy, they must be included. Even though Presidential Decree No. 851 generally excludes items like COLA or overtime, consistent company practice overrides this default exclusion. Thus, an employer’s established favorable practice becomes the enforceable legal standard. 17-May-26About Nicolas and De Vega Law Offices
Nicolas and De Vega Law Offices is a full-service law firm in the Philippines. You may visit us at the 16th Flr., Suite 1607 AIC Burgundy Empire Tower, ADB Ave., Ortigas Center, 1605 Pasig City, Metro Manila, Philippines. You may also call us at +632 84706126, +632 84706130, +632 84016392 or e-mail us at [email protected]. Visit our website https://ndvlaw.com/.
