The required 13th month pay shall be paid not later than December 24 of each year. The Labor Code distinguishes a rank-and-file employee from a managerial employee.
Commission as an incentives or encouragement to ensure productivity, i. However, employees paid on partly commission basis, i. On August 13,Pres. Marcos, took effect on December 16,only employees receiving a basic salary of not more than P1, a Mat2 task 2 executive summary were entitled to 13th pay.
The court ruled that the inclusion may no longer be withdrawn if it has already ripened into a company practice. Thus, if an employee works in two or more private firms, he is entitled to the pay from both or all of them. An employer, however, may give to his employees one half 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.
Allowances and monetary benefits which are not considered or integrated as part of the regular or basic salary, such as the cash equivalent of unused vacation and sick leave credits, overtime, premium, night differential and holiday pay, and cost-of-living allowances, shall be excluded from the computation.
Originally, when PDissued by Pres. The payment may be demanded by the employee upon the cessation of employment. In the computation of the basic salary of employees paid partly on commission basis, we must distinguish between the two types of commission: If he is a government employee, but works part time in a private enterprise, he is entitled to 13th month pay from the private enterprise.
Employees who resigned or were separated during the calendar year shall be entitled to 13th month pay in proportion to the length of time he worked during the year, provided it is at least one month. Managerial employees; Those covered under the civil service law; Those already receiving 13th month pay or its equivalent.
Rank and File Employees Meaning. Employees paid on a purely commission basis are not entitled to 13th month pay. Time of Payment of 13th Month Pay. Drivers who are paid on commission basis, but with guaranteed minimum wage in case their commission be less than their basic minimum, are entitled to 13th month pay.
Employees excluded from coverage of 13th month pay law. As such, it may be excluded from the computation of 13th month pay. With the removal of the salary ceiling, all rank and file employees become entitled to a 13th month pay regardless of the amount of their monthly basic salary unless their employers are exempted from the application of PD They are akin to employees paid on purely commission basis.
They are expressly excluded from the coverage of PD As stated above, only rank-and-file employees are entitled to 13th month pay. Computation Only basic salary is included in the computation of 13th month pay.
Subsequent court and administrative rulings, or changes to, or repeal of, laws, rules and regulations may have rendered the whole or part of this article inaccurate or obsolete.
Private school teachers are entitled to 13th month pay regardless of the numbers of months they work in a year, provided it is at least one month. Amount of 13th Month Pay.
All employees not falling within this definition are considered rank-and-file employees. Employees Covered by 13th Month Pay Law. Sunday, December 18, Caveat: Only the fixed or guaranteed wage is required to be included in the computation see Boie Takeka case, Example Assuming an employee earning a basic salary of P12,Historical Backdrop Employees Covered by 13th Month Pay Law Rank and File Employees Meaning Amount of 13th Month Pay Time of Payment of 13th Month Pay Employees.Download