13th Month Pay

 

Nakakuha ka na ba ng 13-month pay mo? Siguro, oo kasi anong petsa na. Pero kung hindi, bakit kaya?

Let's see who are then entitled to the 13^th month pay under the law. 

Under P.D. 851, all employers must pay their employees a 13th-month pay. Section 1 provides that all those who are receiving a basic salary of not more than P1,000 a month, regardless of the nature of their employment, are entitled to a 13th-month pay not later than December 24 of every year.

Under the said PD those employers already paying their employees a 13th-month pay or its equivalent are not covered by this Decree. However, P.D 851 was modified by Memorandum Order No. 28 requiring all employers to pay all their rank-and-file (RAF) employees a 13th month pay. RAF employees are those who are not considered as managerial or supervisory employees (see Article 219[m]) 

 

Therefore, only rank-and-file employees, regardless of designation or employment status and regardless of the method by which their wages are paid.

 

Are managerial employees entitled to 13^th month pay?

They are not entitled to 13^th month pay under the aforementioned law. However, they may be granted 13^th month pay when they are granted under an employment contract or a company policy or practice.

According to the Revised Guidelines on the Implementation of The 13th Month Pay Law, the following employers are exempted from giving 13^th month pay to their employees under PD 81, as amended:

a.  The Government and any of its political subdivisions, including government-owned and controlled corporations, excepts those corporations operating essentially as private subsidiaries of the Government;

b.  Employers already paying their employees a 13th month pay or more in a calendar year or its equivalent at the time of this issuance;

c.  Employers of household helpers and persons in the personal service of another in relation to such workers; and

d.  Employers of those who are paid on purely commission, boundary, or task basis, and those who are paid a fixed amount for performing specific work, irrespective of the time consumed in the performance thereof, except where the workers are paid on piece-rate basis in which case the employer shall grant the required 13th month pay to such workers.

 

However, by virtue of R.A No. 10361 employers of household helpers and persons in the personal service of another i.e. domestic worker or kasamabahay, are explicitly required to give 13^th month pay to their employees.

 

Here’s another common issue/question, are part-timers entitled to 13^th month?

Definitely yes. The law does not exclude those part-timers. Under the law, workers regardless of their position, designation, or employment status, and irrespective of the method by which their wages are paid, provided they have worked for at least one month during the calendar year, are entitled to a 13^th month pay.

 

On a final note, if the employers of the part-timers would argue that they are paid by results i.e. piece-rate basis/pakyaw, all the more that they are entitled to a 13^th month pay. Considering that under the Revised Guidelines on the Implementation of 13^th Month Pay, employees who are paid on piece work basis are entitled to the 13th month pay. Likewise, those employees who are paid a fixed or guaranteed wage plus commission are also entitled to the mandated 13th month pay, based on their total earnings during the calendar year, i.e., on both their fixed or guaranteed wage and commission.

 

Reference: BAR Reviewer on Labor Law by J.G Chan