THIRTEENTH-MONTH PAY

Question 1

All employers are required to pay their rank and file employees ________, regardless of the nature of their employment and irrespective of the methods by which their wages are paid, provided they worked for at least _____ month during a calendar year.

Answer 1

• thirteenth-month pay

- one (1) month

Question 2

The ________ should be given to the employees not later than _______ of every year.

Answer 2

• thirteenth month pay

- December 24

Question 3

The Labor Code, as amended, distinguishes a rank-and-file employee from a _______.

Answer 3

• managerial employee

Question 4

The thirteenth-month pay shall not be less than ______ of the total basic salary earned by an employee in a calendar year.

Answer 4

• one-twelfth (1/12)

Question 5

The “_______” of an employee for the purpose of computing the thirteenth-month pay shall include all remunerations or earnings paid by his or her employer for services rendered. It does not 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 (COLA).

Answer 5

• basic salary

Question 6

An employer, however, may give to his or her employees _____ of the thirteenth-month pay before the opening of the regular school year and the one half (1/2)on or before _______ 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.

Answer 6

• one half (1/2)

- December 24

Question 7

The ______, shall be included as part of the basic salary for purposes of computation of the 13th month pay of the rank-and-file employee.

Answer 7

• salary differential

Question 8

The ________ pay is not part of the regular wage of employees for purposes of determining overtime and premium payments, fringe benefits, contributions to the State Insurance Fund, Social Security System, National Health Insurance Program, and private retirement plans.

Answer 8

• thirteenth-month pay

Question 9

13th month pay and other benefits, such as productivity incentives, and Christmas bonus, not exceeding _________ are exempt from taxation

Answer 9

• Ninety Thousand Pesos (P90,000.00)