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.
Does thirteenth-month pay affect contributions to the Social Security System?
Under Presidential Decree No. 851, thirteenth-month pay does not increase regular wage-based contributions to the Social Security System.
Does thirteenth-month pay affect contributions to the Social Security System? Read More »
Is the thirteenth-month pay subject to income tax?
Thirteenth-month pay may be subject to income tax under Republic Act No. 10963 if it exceeds the maximum statutory exemption.
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What is the maximum tax-exempt limit for the thirteenth-month pay and other benefits?
Under Republic Act No. 10963, thirteenth-month pay and other equivalent benefits are tax-exempt up to a total of ₱90,000.00.
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Can an employer apply for an exemption or deferment from paying the thirteenth-month pay?
Presidential Decree No. 851 strictly prohibits payment deferments and requires employers to submit an online compliance report by January 15.
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.
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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 »
