Is the thirteenth-month pay considered part of the regular wage for overtime computation?
Presidential Decree No. 851 dictates that thirteenth-month pay is not part of the regular wage for computing overtime or premiums.
What constitutes “basic salary” for computing the thirteenth-month pay?
Under Presidential Decree No. 851, basic salary includes all regular remunerations paid by an employer for an employee’s standard services.
What constitutes “basic salary” for computing the thirteenth-month pay? Read More »
What items are explicitly excluded from the “basic salary” computation?
Presidential Decree No. 851 explicitly excludes allowances, overtime pay, and unused leave conversions from the thirteenth-month basic salary computation.
What items are explicitly excluded from the “basic salary” computation? Read More »
Can excluded benefits be included in the basic salary computation for thirteenth-month pay?
Excluded benefits may be included in thirteenth-month computations under Presidential Decree No. 851 if established by consistent company policy.
How is the proportionate thirteenth-month pay computed?
The proportionate thirteenth-month pay is calculated by dividing the total basic salary earned during the year by 12 under PD 851.
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If an employee earns a total basic salary of ₱216,000 in a year, how much is the thirteenth-month pay?
Under Presidential Decree No. 851, an annual basic salary of ₱216,000 yields a proportionate thirteenth-month pay of exactly ₱18,000.
What is the deadline for paying the thirteenth-month pay?
Presidential Decree No. 851 mandates that employers must issue the thirteenth-month pay not later than December 24 every year.
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Can an employer pay the thirteenth-month pay in installments?
Under Presidential Decree No. 851, employers may split thirteenth-month payments, giving half before the school year and half by December 24.
Can an employer pay the thirteenth-month pay in installments? Read More »
Can a union dictate the frequency of the thirteenth-month pay?
Payment frequency for thirteenth-month pay can be negotiated through a collective bargaining agreement under Presidential Decree No. 851 rules.
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Are piecework basis employees entitled to the thirteenth-month pay?
Presidential Decree No. 851 legally guarantees thirteenth-month pay for employees compensated on a non-traditional piecework basis.
Are piecework basis employees entitled to the thirteenth-month pay? Read More »
