What is the definition of basic pay for purposes of computing the 13th month pay?
In the landmark case of Boie-Takeda Chemicals, Inc. vs. De la Serna, the Supreme Court clarified the definition of basic salary. The Court ruled that commissions, while included in the generic term “wage,” are not part of the “basic salary/wage”. Consequently, under Presidential Decree No. 851, commissions should not be included in computing the thirteenth-month pay. They are considered additional pay for extra efforts rather than standard remuneration. 17-May-26About Nicolas and De Vega Law Offices
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