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.
Is the thirteenth-month pay subject to income tax? Read More »
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.
What is the maximum tax-exempt limit for the thirteenth-month pay and other benefits? Read More »
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.
What is the definition of basic pay for purposes of computing the 13th month pay?
The Supreme Court ruled that commissions are excluded from basic salary for thirteenth-month computations under Presidential Decree No. 851.
What is the definition of basic pay for purposes of computing the 13th month pay? Read More »
Are employees with multiple employers entitled to thirteenth-month pay from all of them?
Presidential Decree No. 851 entitles employees working for multiple private firms to thirteenth-month pay from all their respective employers.
Are employees with multiple employers entitled to thirteenth-month pay from all of them? Read More »
Is a resigned or separated employee still entitled to thirteenth-month pay?
Under Presidential Decree No. 851, separated or resigned employees remain legally entitled to their proportionate thirteenth-month pay.
Is a resigned or separated employee still entitled to thirteenth-month pay? Read More »
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 »
