How is the thirteenth-month pay calculated for employees with a fixed wage plus commission?
Employees paid a fixed or guaranteed wage plus commission are entitled to the thirteenth-month pay. However, the Supreme Court ruled that their benefit is based strictly on their fixed or guaranteed wage, which is patently their “basic salary”. According to the guidelines for Presidential Decree No. 851, commissions are given for extra effort and do not form part of the basic salary. Therefore, the thirteenth-month pay is calculated solely on the fixed wage portion of their income. 17-May-26About Nicolas and De Vega Law Offices
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