What items are explicitly excluded from the “basic salary” computation?
Allowances and monetary benefits not integrated as part of the regular salary are excluded from the basic salary. Examples of these exclusions include the cash equivalent of unused vacation and sick leave credits, overtime, premium, night shift differential, holiday pay, and cost of living allowance (COLA). Under the guidelines implementing Presidential Decree No. 851, these specific items cannot inflate the thirteenth-month pay. They are treated as supplementary benefits rather than foundational earnings. 17-May-26About Nicolas and De Vega Law Offices
Nicolas and De Vega Law Offices is a full-service law firm in the Philippines. You may visit us at the 16th Flr., Suite 1607 AIC Burgundy Empire Tower, ADB Ave., Ortigas Center, 1605 Pasig City, Metro Manila, Philippines. You may also call us at +632 84706126, +632 84706130, +632 84016392 or e-mail us at [email protected]. Visit our website https://ndvlaw.com/.
