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The 13th Month Pay Law of the Philippines


We are now in the last leg of 2019, which is the month of December. December, is the most festive month for us Filipinos because the month is crammed with several occasions like; Christmas, Rizal Day, New Year, and Company year-end parties.

The 13th Month Pay Law of the Philippines
"santa-claus-Christmas-reindeer" by Clker-Free-Vector-Images is licensed under CC0

So how can we cover these expenses? You've already probably guessed it. The coveted 13th Month Pay.



What Is a 13th Month Pay?


It is a mandatory benefit given to Rank-and-File employees inline with the Presidential Decree No. 851 - Dated December 22, 1975.



What Is a "Bonus"?



This is not the same as 13th month pay. Bonus is given as a discretionary rule of the company, depending on the company's income. Bonus, is an act of generosity of the company to its employees, which is not mandatory.



Who Are the Rank-And-File Employees?


According to DOLE (Department of Labor and Employment), any employee who is not considered managerial are categorized as rank-and-file.



When Will Be an Employee Be Eligible for the 13th Month Pay?


Employees who have worked for at least 1 month during the calendar year are eligible for the pay. Regardless of the nature of their employment status and methods of wage payment (Refer to to Section 3 of the PD No. 851 – Reference links are provided at the end of this article).



How Is the 13th Month Pay Computed?


Read my previous article to fully understand how it is computed. Click the link below.

How To Compute Your 13th Month Pay



How to Know My Estimated 13th Month Pay?


Way back 2017, I've created a calculator for this purpose. Click the link below.

Thirteenth (13th) Month Pay Calculator


References:




"At Christmas, all roads lead home."
Marjorie Holmes


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