FAQ: 13th Month Pay

1. In General

See: FAQ: Statutory Monetary Benefits.

The above FAQ covers frequently asked questions with their answers (FAQ) involving statutory monetary benefits in terms of general application, i.e., the questions and answers apply to all forms of statutory monetary benefits, including this current benefit. Thus, the following questions and answers are specific only to the present benefit.

2. Specific to 13th Month Pay

a. Entitlement

Are rank-and-file employees who get promoted to a manager position in the middle of the year still entitled to 13th month pay?

The rank-and-file employees will only be entitled to a pro rata 13th month pay during the time when they were rank-and-file.

b. The Benefit

May 13th month pay be paid before December 24?

Yes, 13th month pay may be paid before December 24. It may also be paid in installments during the calendar year. For example, a portion of the 13th month pay may be paid in June (to help with school tuition and expenses, etc.), while the balance can be paid on/before December 24 (which will lessen the financial burden on the employer). In such a case, both the employer and the employees will benefit.

Are amounts paid to the employees who used leave credits included in the basic salary earned by the covered employees?

No, the amounts paid to the employees who used leave credits are not included in the basic salary earned by the covered employees. Basic salary is defined as remuneration or earnings paid to covered employees for services rendered. During the leave of absence, the covered employees do not render service.

What happens to the 13th month pay of rank-and-file employees who get promoted to a manager position in the middle of the year?

If rank-and-file employees get promoted to a manager position in the middle of the year, they will only be entitled to 13th month pay for the basic salary earned as rank-and-file employees then divided by twelve (12) months following the formula.

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