FAQ: 13th Month Pay

1. In General

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

What is 13th-month pay?

The 13th-month pay is an additional compensation mandated by law, equivalent to one-twelfth (1/12) of an employee’s total basic salary earned within a calendar year.

a. Entitlement

Who is entitled to receive 13th-month pay?

All rank-and-file employees in the private sector who have worked for at least one month during the calendar year are entitled to receive 13th-month pay.

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

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

Are managerial employees entitled to 13th-month pay?

No, managerial employees are generally excluded from receiving 13th-month pay as the benefit is intended for rank-and-file employees.

Are employees paid on a piece-rate basis entitled to 13th-month pay?

Yes, it is computed based on total earnings for the year.

Do employees with multiple employers receive separate 13th-month pays?

Yes, from each employer, based on respective earnings.

Are probationary employees entitled to 13th-month pay?

Yes, if they have worked at least one month.

Are resigned or terminated employees entitled to 13th-month pay?

Yes, they are entitled to a prorated 13th-month pay based on the number of months worked during the calendar year.

Are employees on maternity leave entitled to 13th-month pay?

Yes, including salary differential during maternity leave in the computation.

Are part-time employees entitled to 13th-month pay?

Yes, if they have worked for at least one month during the calendar year.

Are employees paid on a commission basis entitled to 13th-month pay?

Employees paid purely on commission are excluded, but those with fixed wages in addition are entitled based on total earnings.

Are domestic workers entitled to 13th-month pay?

Yes, domestic workers (kasambahay) are entitled to 13th-month pay.

b. The Benefit

Is the 13th-month pay different from a Christmas bonus?

Yes, 13th-month pay is mandatory by law, while Christmas bonuses are discretionary.

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.

Similar Posts

Labor Law PH

Links

Legal