How is the thirteenth-month pay calculated for employees with a fixed wage plus commission?
For employees with fixed wages plus commission, thirteenth-month pay is calculated strictly on the fixed wage under Presidential Decree No. 851.
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.
How is the proportionate thirteenth-month pay computed? Read More »
Are employers who already provide a Christmas bonus required to pay thirteenth-month pay?
Presidential Decree No. 851 exempts employers already paying their employees an equivalent annual bonus amounting to one-twelfth of basic salary.
Are employers of household helpers covered by Presidential Decree No. 851?
While initially exempt under Presidential Decree No. 851, household helpers are now entitled to thirteenth-month pay under RA 10361.
Are employers of household helpers covered by Presidential Decree No. 851? Read More »
Are commission-based workers entitled to thirteenth-month pay?
Employers of workers paid purely on a commission, boundary, or specific task basis are exempt under Presidential Decree No. 851.
Are commission-based workers entitled to thirteenth-month pay? Read More »
Are workers paid on a piece-rate basis entitled to thirteenth-month pay?
Despite general exemptions, Presidential Decree No. 851 specifically guarantees thirteenth-month pay for workers paid on a standard piece-rate basis.
Are workers paid on a piece-rate basis entitled to thirteenth-month pay? Read More »
How much is the legally mandated thirteenth-month pay?
Presidential Decree No. 851 sets the minimum thirteenth-month pay at one-twelfth of the total basic salary earned during the year.
How much is the legally mandated thirteenth-month pay? Read More »
