Does thirteenth-month pay affect contributions to the Social Security System?
The thirteenth-month pay does not affect or increase an employee’s contributions to the Social Security System. It is legally excluded from the regular wage used to determine contributions to the State Insurance Fund, PhilHealth, and private retirement plans. This separation is a rule established under the guidelines of Presidential Decree No. 851. Therefore, receiving this mandatory bonus will not trigger higher mandatory government deductions based on regular wages. 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/.
