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 »
Excluded benefits may be included in thirteenth-month computations under Presidential Decree No. 851 if established by consistent company policy.
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 »
Under Presidential Decree No. 851, an annual basic salary of ₱216,000 yields a proportionate thirteenth-month pay of exactly ₱18,000.
Presidential Decree No. 851 mandates that employers must issue the thirteenth-month pay not later than December 24 every year.
What is the deadline for paying the thirteenth-month pay? Read More »
Under Presidential Decree No. 851, employers may split thirteenth-month payments, giving half before the school year and half by December 24.
Can an employer pay the thirteenth-month pay in installments? Read More »
Payment frequency for thirteenth-month pay can be negotiated through a collective bargaining agreement under Presidential Decree No. 851 rules.
Can a union dictate the frequency of the thirteenth-month pay? Read More »
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 »
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 »
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 »
