13 MONTH PAY Flashcards
What article govern the 13month pay?
PD 851
All employers are required to pay their rank-and-file employees thirteenth-month pay, regardless of the nature of their employment and irrespective of the methods by which their wages are paid, provided they worked for at least one (1) month during a calendar year. True or False
True. All employers required to pay their rank and file a 13month pay.
When should 13-month pay to be given or released to its employees?
not later than December 24
The thirteenth-month pay shall be less than one-twelfth (1/12) of the total basic salary earned by an employee in a calendar year. True or False
FALSE. IT SHOULD NOT BE LESS THAN ONE-TWELFTH OF THE TOTAL BASIC SALARY.
The “basic salary” of an employee to compute the thirteenth-month pay shall include all remunerations or earnings paid by his or her employer for services rendered. TRUE OR FALSE
TRUE.
In computing the thirteenth-month pay, it does include 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 shift differential and holiday pay, and cost of living allowance. True or False.
False. Allowances and benefits are not included in the computation of 13-month pay unless it is stipulated in the CBA
The formula for the computation of 13-month pay
Total basic salary earned during the year/ 12 months
Who are the following employee not covered by the 13-month pay benefit?
- The government and any of its political subdivisions, including government- owned and controlled corporations, except those corporations operating essentially as private subsidiaries of the government;
- Employers who are already paying their employees thirteenth- month pay or more in a calendar year or its equivalent at the time of the issuance of PD 851;
- Persons in the personal service of another in relation to such workers; and
- 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 those workers who are paid on piece-rate basis, in which case their employer shall
grant them thirteenth-month pay).
Are piece rate basis employee entitled for 13-month pay? Yes or No?
Yes
shall refer to those who are paid a standard amount for every piece or unit of work produced that is more or less regularly replicated, without regard to the time spent in producing the same.
workers paid on piece-rate basis
The thirteenth-month pay shall be paid not later than December 24 of every year. An employer, however, may give to his or her employees one-half (1/2) of the thirteenth- month pay before the opening of the regular school year and the remaining half on or before December 24 of every year. The frequency of payment of this monetary benefit may be the subject of an agreement between the employer and the recognized/collective bargaining agent of the employees. TRUE OR FALSE?
TRUE
Employees who are paid on piecework basis are entitled to the thirteenth-month pay. TRUE OR FALSE?
TRUE
Employees who are paid a fixed or guaranteed wage plus commission are also entitled to the thirteenth-month pay, based on their earnings during the calendar year (i.e., on both their fixed or guaranteed wage and commission). TRUE OR FALSE?
TRUE
Supreme Court ruled that commissions, while included in the generic term wage, are part of “basic salary/wage” and therefore should be included in computing the thirteenth-month pay. TRUE OR FALSE?
False. Commissions are not part of basic salary/wage thus, it shouldn’t be included in the computation of 13-month pay.
Clear explanation why commission is not part of basic salary.
Fixed or guaranteed wage is patently the “basic salary” for this is what the employee receives for a standard work period. Commissions are given for extra efforts exerted in consummating sales or other related transactions. They are, as such, additional pay, which this Court has made clear do not form part of the “basic salary”
