A resigned employee’s thirteenth-month pay is computed proportionately based on months worked prior to separation under Presidential Decree No. 851.
Under Republic Act No. 11210, salary differentials received during maternity leave are included in computing an employee’s thirteenth-month pay.
How is thirteenth-month pay computed for a female employee who was on maternity leave? Read More »
Presidential Decree No. 851 dictates that thirteenth-month pay is not part of the regular wage for computing overtime or premiums.
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 »
Thirteenth-month pay may be subject to income tax under Republic Act No. 10963 if it exceeds the maximum statutory exemption.
Is the thirteenth-month pay subject to income tax? Read More »
Under Republic Act No. 10963, thirteenth-month pay and other equivalent benefits are tax-exempt up to a total of ₱90,000.00.
What is the maximum tax-exempt limit for the thirteenth-month pay and other benefits? Read More »
Presidential Decree No. 851 strictly prohibits payment deferments and requires employers to submit an online compliance report by January 15.
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 »
For employees with fixed wages plus commission, thirteenth-month pay is calculated strictly on the fixed wage under Presidential Decree No. 851.
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 »
