Nature of 13th Month Pay

WHAT IS 13TH MONTH PAY?

13th month pay is in the nature of additional income granted to employees who are not receiving the same. PD. 851 is undoubtedly a labor standards law whose purpose is to increase the real wages of the workers. It is based on wage but not part of wage.

WHAT IS THE MINIMUM AMOUNT OF 13TH MONTH PAY?

The minimum 13th month pay required by law should not be less than one-twelfth (1/12) of the total basic salary earned by an employee within a calendar year.

WHAT IS THE MINIMUM PERIOD REQUIRED TO BE QUALIFIED TO RECEIVED 13TH MONTH PAY?

To be entitled to the 13th month pay benefit, it is imposed as a minimum service requirement that the employee should have worked for at least one (1) month during a calendar year.

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