Monday, December 5, 2011

13th Month Basics



Yes, it's definitely one of the things that are being waited for every year, most especially this time of the month.  While for one this might translate to having extra cash to spend for one's self and/or loved ones. To another, this might be the only hope, judging from the tough times that everyone is experiencing today. 

Now let us go a bit technical, shall we?  I managed to cross-refer two good sources in helping us define and know our rights towards this timely and most love bonus!! ☺



As mandated by law on Presidential Decree No. 851, requiring all employers to pay their employees a 13th month pay.

What is 13th month pay?
It is a form of monetary assistance equivalent to the monthly basic compensation received by an employee, computed pro-rata according to the number of months within a year that an employee has rendered service to an employer (basic monthly pay/12 x number of months actually worked).

Who are entitled to 13th month pay?
All rank and file employees, regardless of status, who have worked for at least one (1) month are entitled to receive 13th month pay.

Is it part of the Company bonus?
No. The payment of 13th month pay is mandated by law. It is separate from any other bonus given by the company.

Is 13th month pay taxable?
No, as long as the amount does not exceed P30,000. Only the amount in excess of P30,000 is taxable.

What if I work in more than one company?
Workers who work in two or more companies or private employers, whether on full or part time basis, are entitled to the required 13th month pay from all their private employers regardless of their total earnings from each or all their employers.

When must it be paid?
The 13th month pay shall be paid not later than December 24 of each year. An employer, however, may give to his employees one half (½) of the required 13th month pay before the opening of the regular school year and the other half on before the 24th of December of every year. The frequency of payment of this monetary benefit may be the subject of agreement between the employer and the recognized/collective bargaining agent of the employees.


It is always a best practice to know your own rights. After all, no one will greatly benefit from it other that yourself .  And it is equally right as well to know how spend your money wisely ☺

Read more with the sources used for this article:
Philippine e-Legal Forum

 Disclaimer:
The information cited/used belongs to their rightful owner(s) and has been posted for informational purposes only.


2 comments:

  1. Weeeee... naaamoy ko na ang 13th month pay namin! Malapit na malapit na :)

    http://eltorobumingo.blogspot.com

    ReplyDelete
  2. Samin today sya binigay ☺
    Yung sa Dad ko, super aga... 2nd week of December!

    ReplyDelete