![]() On the other hand, it’s important to note the following employees that are exempted from getting a 13th month pay, according to the DOLE website, sourced from Presidential Decree 851: Increase your chances with 20+ banks and lendersĪpply Now Non-Payment of 13th month, and where to reportĪll rank-and-file employees with work tenure of at least one month are entitled to receive a 13th month pay. (Read: The Christmas Bonus Around The World: Which Countries Give 13th Month Pay?) Fast Personal Loan approval Other than that, a lot of companies have long since practiced providing Christmas Bonuses on top of the obligatory 13th month pay. 6971, and the Social Amelioration Program Cash bonus for the Sugar Industry workers under R.A. Some of the bonuses mandated by law are the Productivity Incentive Bonus under R.A. Employers may provide cash and/or other gifts according to the company’s terms and conditions. It is non-taxableĪ bonus is based upon the discretion of the company and is not mandated by law. It may be determined based on an employee’s length of stay, exceptional performance, or a company’s high productivity. The employer determines the amountĪ bonus is granted by the employer to show appreciation or gratitude to its employees. The term “Christmas bonus” was coined because it is released during the holiday season. It is upon the employer’s discretion to release bonuses depending on the company practice.īonuses may be released any time of the year. In essence, every type of bonus is an employer’s voluntary obligation to the employees. Important things to know about the Christmas Bonus in the Philippines 1. Otherwise, you will be able to receive your 13th month pay in full, without any taxes or deductions. ![]() It is taxableĪs of January 2018, this employee benefit has been updated and is taxable if the total pay is more than P90,000, under the TRAIN Law. (Read: How To Compute Your 13th Month Pay) 3. The basic salary is made up of the amount paid by the employer to its employee for the services done without the deductions of contributions, personal income tax, and other company-imposed deductions (i.e. Using P25,000 as a sample for basic monthly salary, the pay is calculated as such:ġ3th Month Pay = P25,000 x 8 = P200,000 / 12 = P16,666.67 Then the 13th month pay is pro-rated or divided based on the length of employment. In this example, an employee has been working in the company for eight months within the calendar year. If you were employed by the same company for one whole year, you will be able to receive this benefit in full. The computation is based on the total basic annual salary of an employee, divided by the number of months you were in the company. (Read: BIR: Health Card Premiums No Longer Taxable) 2. See below where and how you can file a report against employers who do not grant 13th month pay to their employees.Īnd as for Christmas bonus, an employer’s failure to provide bonuses to its employees is not subject to any legal action, unless it has been a long-standing practice in the company or is a part of the signed contract of the employee. Regular workers who are not granted the 13th month pay have the right to sue their employers. A Presidential Decree 851,”Thirteenth-month pay” shall mean one twelfth (1/12) of the basic salary of an employee within a calendar year ” It should be released not later than December 24 of each year. It is an employer’s legal obligation to grant 13th month pay to its employees.Īll employees, regardless of status, are entitled to receive this benefit if he/she has worked for at least on month in the company. Important things to know about the 13th Month Pay in the Philippines 1. Read on as we take a deeper look into these two types of employee benefits. How can you make the most of these much-anticipated holiday windfalls? Well, first we need to look at what “13th Month Pay” and “Christmas Bonus” actually mean. And, for some very lucky employees, there is also the additional blessing of the Christmas Bonus. The meaning of “unlucky” number 13 changes every December to mean doubled blessings, as the most anticipated double monthly salary is credited to every employee’s account. ![]() This is all thanks to the country’s 13th Month Pay Law. In the Philippines, however, all of that is forgotten right around December. These are just the biggest examples of Tetraphobia observed in the region. Every Friday the 13th is a day for caution, and the 13th floors in buildings are labelled the 14th floor instead. ![]() The number 13 is often touted as bad luck, at least here in Southeast Asia. Christmas Bonus: Know The Difference 5 min read By eCompareMo on NovemWhat is the thirteenth month pay? Who are entitled to get it, and what makes it different from a Christmas bonus? ![]()
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